Tower Announces $87 Million Offer for Rival Fidelity Life Assurance Co.

Tower Ltd., a New Zealand insurer, announced an offer to buy local rival Fidelity Life Assurance Co. for NZ$118 million ($87 million)

Tower is offering NZ$82 a share for closely held Fidelity, comprising NZ$55 in cash and NZ$27 in Tower shares, it said in a statement. Shares of Auckland-based Fidelity last traded at NZ$80, Tower said.

The terms of the offer are based on limited public information about Fidelity, and Tower is seeking access to additional information, it said. The offer is subject to matters being confirmed in respect of Fidelity’s financial position.

Tower shares rose 4 cents, or 2.2 percent, to NZ$1.87 at the 5 p.m. market close in Wellington.

Fidelity described the offer as “unsolicited” in a statement by wholly owned Fidelity Capital Guaranteed Bond Ltd. send to the stock exchange. The offer doesn’t alter any of the rights of bond holders, the unit said.

Fidelity has about 150 shareholders with 53 percent of the stock owned by a single family trust, according to its website.

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

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