Tower Australia stake heads to Japan

Tower Australia Group is taking on a new cornerstone shareholder, with investor Guinness Peat Group selling its 29.7 per cent stake in the insurer to Japan's Dai-ichi Mutual Life Insurance Company. The stake will be sold at $3.75 per share. Dai-ichi will acquire 14.9 per cent first up. Another five per cent requires approvals from the Foreign Investment Review Board and the Australian Prudential Regulation Authority. The remaining 9.8 per cent requires approval from Tower Australia shareholders. Tower Australia says it has negotiated a Business Co-operation Agreement with Dai-ichi, but that it would be implemented only if shareholders approved the transaction. "Dai-ichi Life will bring significant additional expertise from its existing life insurance operations in Japan and Asia," Tower Australia chairman Rob Thomas said. If... [read full story]