August 8, 2008
Share Acquisition of and Strategic Business Alliance with
Tower Australia Group Limited
The Dai-ichi Mutual Life Insurance Company (the “Company”; President: Katsutoshi
Saito) has agreed with Guinness Peat Group plc (“GPG”) to conditionally acquire its
29.7% shareholdings in Tower Australia Group Limited (“Tower”). At the same time, the
Company has entered into an agreement to form a strategic business alliance with Tower.
The Company believes that Tower has strong growth prospects and is well positioned as a
specialist life insurer to take advantage of the burgeoning Australian life insurance market.
The Company will fully support existing management’s strategy and work closely with the
Board and management to enhance Tower’s core capabilities and shareholder value.
This initiative in Australia is part of the Company’s strategy to expand its business in the
overseas life insurance market and follows the Company’s recent investments in Taiwan,
Vietnam, India, and Thailand.
Outline of share acquisition
•
The total acquisition cost of GPG’s 29.7% shareholdings in Tower is A$376.3 million,
and the price per share is A$3.75.
•
The share acquisition will be executed according to the process outlined below:
(1) 14.9%: acquired immediately (A$188.6 million)
(2) 5.0%: subject to approvals by Australian regulatory bodies (A$63.3 million)
(3) 9.8%: subject to regulatory and Tower shareholder approval (A$124.4 million)
Profile of strategic business alliance
•
Two representatives of the Company will be appointed as directors on Tower’s Board
of Directors.
•
The Company will provide knowledge and expertise through the exchange or transfer
of appropriately skilled Company employees in various areas, such as the group
insurance business and asset management, in order to maximize Tower’s corporate
value.
(Reference)
Company Profile of Tower
Company Name
Tower Australia Group Limited
Foundation
1869 (established as the New Zealand
Government Life Insurance Office)
2006 (Separation of New Zealand and
Australian businesses)
Location of the Headquarters
Milsons Point, NSW Australia
Representative Robert
Thomas,
Chairman
Listed Exchange
Australian Securities Exchange
Key Figures (consolidated)
(September 2007)
・Premium Revenue A$641 million ・Profit after Tax
A$41 million
・Total Assets
A$3,851 million
Company Profile of GPG
Company Name
Guinness Peat Group plc
Foundation 1990
Location of the Headquarters
London, United Kingdom
Listed Exchange
London Stock Exchange
Australian Securities Exchange
New Zealand Stock Exchange
