Auckland-headquartered Tower Limited intends to simplify its corporate structure to make Tower Insurance the listed parent company of the Tower Group, subject to regulatory approval, the company said in a statement yesterday.
To make this happen, Tower Limited, Tower Financial Services Group and Tower New Zealand propose to undertake a short-form amalgamation into Tower Insurance, according to a corporate statement.
The insurer will become the amalgamated and continuing company, and change its name to Tower Limited.
As a result of the amalgamation:
• Tower Insurance will be the listed entity on the stock exchanges, NZX and ASX
• Tower Insurance will continue to be the insurer licensed by the Reserve Bank of New Zealand
• Tower Insurance shares will be cancelled without consideration
• Tower Limited shares will become shares in Tower Insurance. Shareholders that hold shares in Tower Limited prior to the amalgamation will become shareholders of Tower Insurance
• Tower’s constitution will become the constitution of Tower Insurance, and Tower Insurance will be renamed Tower Limited.
Tower Insurance does not anticipate any material adverse change to its financial condition or solvency position.
Effect on policyholders“Tower Insurance will continue to provide policyholder’s insurance once the amalgamation is complete,” the statement said.
Policyholders do not need to do anything. They remain covered under the same terms and conditions and there will be no change to their rights and obligations under their policy.
Tower Limited proposes to effect the transaction no later than 30 September 2020.
Tower Insurance is among the top three largest P&C insurers in New Zealand.