Guinness Peat will offer NZ$2.30 apiece for the shares, valuing all of Tower at NZ$917 million ($713 million), the company said in a statement e-mailed to Bloomberg News. Tower shares were halted earlier today, and last traded at NZ$2.08.
Guinness Peat owns 19.7 percent of Tower and its New Zealand-based executive director Tony Gibbs is Tower's chairman.
Gibbs said Guinness Peat's investment in Tower, New Zealand's third-largest fund manager for individuals, had reduced as a result of the spin off of Tower Australia Group Ltd. and Australian Wealth Management Ltd. The offer gives Guinness Peat the ability to invest more money and increase its holding to a more optimal size, he said.
Guinness Peat shares gained 1 cent to NZ$1.75 at the 5 p.m. market close in Wellington.
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