tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, August 6th, 12:13PM

News

rss
Latest Headlines

Fidelity keenly interested in GPG's 35% Tower stake

Fidelity Life is keenly interested in Guinness Peat Group's 35% stake in fellow insurance company Tower and says it has already offered to buy its life business.

Monday, February 14th 2011, 4:54PM 1 Comment

by Jenny Ruth

"We've always stated that we're looking for acquisition opportunities," says chief executive Milton Jennings of the 100% New Zealand-owned specialist life insurance and Kiwisaver scheme provider.

When Tower's $118 million takeover offer for Fidelity lapsed in October last year, Fidelity had "most definitely" indicated its interest in Tower's life business, Jennings says. Fidelity's three largest shareholders which control more than 80% of its shares had already rejected Tower's offer before it lapsed.

"Given the statement last week (from GPG), we will be keen to have a look." Fidelity would also be interested in Tower's Kiwisaver business, Jennings says.

However, Tower managing director Rob Flannagan says Fidelity has never made an approach and such an offer has never been considered by Tower's board.

Flannagan says ever since he took on his current role in 2006 he's been aware of gossip that bits and pieces of Tower are going to be sold to third parties and says dealing with such rumours is "like punching a cloud."

"It's disruptive for the staff and it's disruptive for the market. If you're going to make an offer, make an offer."

Last week, GPG announced an orderly realisation of all its assets with the possible exception of Coats.

The Tower stake is GPG's second largest asset. Forsyth Barr analyst Guy Hallwright values it at $180.1 million.

Tower also has health and general insurance businesses.

"It would be difficult (for Fidelity to buy just the life and Kiwisaver parts of Tower) because GPG is only a 35% shareholder," Hallwright says.

"Anything like that would have to be beneficial for all shareholders."

Given the Takeovers Code, any would-be buyer of a stake in Tower larger than 19.9% would have to make at least a partial takeover offer.

Fidelity, and unlisted company with about 150 shareholders, had total assets of $529.4 million at June 30 last year and equity of $112.7 million.

 

« Tower out of the loop on GPG's sale plansKiwiSaver mismatch a 'huge challenge' for advisers »

Special Offers

Comments from our readers

On 16 February 2011 at 6:59 am Collin said:
Surely this is not a serious approach from Fidelity, talk about the tadpole swallowing the whale.
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 ▼2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.15 3.29 ▼3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 5.50 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 ▼3.85 ▼3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.55 2.65 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac ▼3.39 3.45 ▼2.99 ▼3.35
SBS Bank 4.54 3.09 3.19 3.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.59 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 ▼2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 ▼3.29
TSB Bank 5.34 3.35 3.49 3.79
TSB Special 4.54 2.55 2.69 2.99
Wairarapa Building Society 4.99 3.65 3.69 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.12 3.19 3.14

Last updated: 6 August 2020 8:24am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com