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Tower hires Goldman Sachs as it kicks off review of its ownership structure

Insurance / news
Tower hires Goldman Sachs as it kicks off review of its ownership structure
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Insurer Tower says it has hired investment bank Goldman Sachs as it launches a strategic review of its ownership structure.

Tower says the purpose of the review, which is supported by 20% shareholder Bain Capital, is to "explore options to maximise value for all Tower shareholders and optimise its capital structure to provide a strong platform for market competitiveness."

Goldman Sachs has been hired as financial adviser to help with the review.

"In our commitment to delivering long-term value to our shareholders, we believe that a thorough examination of our ownership structure is prudent at this time. This strategic review will enable us to explore options that align with our objectives and position us for continued success in the marketplace," Tower Chairman Michael Stiassny says.

Tower provides home, contents and motor vehicle insurance in New Zealand and South Pacific countries.

It says business operations will continue as usual while the review is underway.

"The Board will not comment further on the strategic review until the process is completed, which is expected to take several months. No decisions will be made regarding any potential transaction or other outcome until the completion of the process," says Tower.

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2 Comments

What is the conclusion they want from the review?

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"explore options to maximise value for all Tower shareholders and optimise its capital structure to provide a strong platform for market competitiveness."

That's easy reject more claims on some obscure level of detail in the policy.

Check out Trust Pilot Au for comments on Tower in Oz. Even if NZ Tower not the same entity as Au Tower they may operate similarly. I had all house/car/contents insurance with them for a year, no claims, but decided to change to another provider about 2 years ago.

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