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Tower plans to simplify its corporate structure

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New Zealand insurance group Tower has announced plans to simplify its corporate structure, a move that will make Tower Insurance the listed parent company of the business.

Tower Insurance will change its name to Tower Limited, becoming the amalgamated and continuing company. It will be the listed entity on the New Zealand and Australian stock exchanges with the “TWR” ticker.

For the changes to occur, Tower Limited, Tower Financial Services Group and Tower New Zealand intend to undertake a short-term amalgamation under Section 222(2) of the Companies Act 1993 down into Tower Insurance.

Tower said today that it aims to complete the amalgamation plan no later than September 30, subject to approval from the Reserve Bank of New Zealand. Approval from shareholders is not required for the proposed changes.

“Tower Insurance does now anticipate any material adverse change to its financial condition or solvency position,” the business said in an investor update.

When the amalgamation is in place, Tower Insurance will continue to be the insurer licensed by the central bank. Investors with shares in Tower Limited prior to the changes will become shareholders of the new parent company.

Existing Tower Insurance policyholders will remain covered under the same terms and conditions after the changes are introduced, and their rights and obligations remain as it is.