Guinness Peat Makes Partial Bid for 15.3% of Tower

Guinness Peat (GPG) Group Plc, a London- based investment company, will bid for a 15.3 percent stake in Tower Ltd. (TWR), raising its holding to 35 percent.

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.

To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.

To contact the editor responsible for this story: Iain Wilson iwilson2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.