A decision by Tyndall Australia to withdraw its Privy Council appeal against Tower Corporation's demutualisation plans has topped off a huge week for the New Zealand-based financial services organisation.
On Monday Tower's members voted almost unanimously (nearly 99 per cent) in favour of the group's demutualisation plans, and that vote played a big part in Tyndall's decision to withdraw its Privy Council actions.
Tyndall said that following that vote it would respect the wishes of Tower's members and withdraw its appeal.
The alternative it was proposing was a marriage between Tyndall and Tower. This proposal, and the litigation which followed, was kicked off when Tyndall was 51 per cent owned by Guinness Peat Group. However, during the week Royal & SunAlliance went unconditional on its takeover bid for Tyndall.
Tower says Tyndall's decision removes the last impediment to its demutualisation process. The next step is to return to the High Court and seek final approval of the demutualisation plans members have approved.
The third big win for Tower this week was the company's takeover of FAI Life. On Wednesday Tower said its bid went unconditional as it had a commitment of more than 80 per cent of the shares in the group and it was confident the 90 per cent level would be achieved by the time the offer closes on May 21.
Tower initially offered shareholders A$1.50 a share, but raised its bid by 5c a share later, on the condition it becomes entitled to 90 per cent of the shares at the offer's close.
A decision by Tyndall Australia to withdraw its Privy Council appeal against Tower Corporation's demutualisation plans has topped off a huge week for the New Zealand-based financial services organisation.