Tower Ltd. (TWR), New Zealand's third- largest fund manager for individuals, said an offer from Guinness Peat Group Plc (GPG) for the company's shares is below the value placed on the stock by an independent appraisal.
Guinness Peat, a London-based investment company, is offering NZ$2.30 a share for a 15.3 percent stake, valuing all of Tower at NZ$917 million ($724 million). The shares are worth between NZ$2.45 and NZ$2.89, Auckland-based Tower said in a statement to the stock exchange, citing a report from Grant Samuel & Associates Ltd.
Guinness Peat owns 19.7 percent of Tower and it's New Zealand-based executive director Tony Gibbs is Tower's chairman. Earlier today, Guinness Peat said it already has acceptances and other indications of support that will give it about 11 percent of Tower. The offer closes June 19.
Tower said it recommends shareholders allow Guinness Peat to make the offer. Tower shares were unchanged at NZ$2.19 at the 5 p.m. market close in Wellington, before the recommendation was published.
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