Tower board working with Suncorp on its bid to buy

Tuesday, 27 June 2017

Tower is backing Australia's Suncorp-owned Vero Insurance's bid to buy its business.

The New Zealand insurance company has signed a scheme implementation agreement with Suncorp.

Vero will pay shareholders $1.40 a share for the company.

Suncorp had been competing with Canadian Fairfax Financial Holdings for the company – it had offered $1.17 a share.

In a statement, Suncorp said: ' Vero intends to work closely with the Tower board to bring the transaction to fruition, providing the best result for both company's shareholders and customers.

'The scheme of arrangement remains subject to a number of conditions, including approval by Tower shareholders and court approval. The transaction is also subject to necessary regulatory approvals, including approval from the New Zealand Commerce Commission and the Reserve Bank of New Zealand.'