Shares in life insurer Tower Australia jumped more than 40 percent Wednesday after it unanimously recommended shareholders accept a takeover offer from Japan’s Dai-ichi Life Insurance Co.
Shares closed up 41.76 percent at 3.87 Australian dollars (3.91 US), one day after Dai-ichi said it would take over the mid-sized Australian company by May as it seeks to shore up its business in growing overseas markets.The Japanese firm is already the largest shareholder in Tower, with a 28.96 percent stake, and to take full control plans to make an additional share purchase, through a tender offer, for about 99.6 billion yen (1.21 billion US).
Tower said the 4.00 Australian dollar per share offer represented a 46.5 percent premium on Tower’s last traded price on December 24.
“The independent directors believe that this offer represents a compelling premium and a highly attractive outcome for our shareholders,” Tower chairman Rob Thomas said in a statement.
The deal for Dai-ichi, Japan’s second-largest life insurer, would be its first acquisition since the company went public in April.
Melbourne, Dec 29, 2010 (AFP)
