DecisionConsent granted
Section 13(1)(a) Overseas Investment Act 2005
Decision Date1 June 2017
InvestmentAn overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in all the shares in Tower Limited that the applicant does not already own (being currently 80.01% of the total shares in TOWER Limited), the consideration of which exceeds $100m.
Consideration$175,000,000
ApplicantVero Insurance New Zealand Limited
Australian Public (74.09%)
United States Public (10.44%)
Various overseas persons (10.26%)
United Kingdom Public (5.21%)
VendorTOWER Limited
New Zealand Public (91.75%)
Various overseas persons (8.25%)
Background

The Applicant is ultimately wholly-owned by Suncorp Group Limited, a company incorporated in Australia and listed on the ASX and operates as a general insurer in New Zealand.

The Applicant believes that the Investment will consolidate the Applicant and Suncorp Group’s position in the New Zealand general insurance market, particularly in the retail insurance space. The Applicant believes that the combined business would generate significant shareholder value through operating efficiencies, as well as reinsurance and technology synergies (which will assist the business to deliver competitive products and services to the market).

The overseas investment transaction has satisfied the criteria in section 18 of the Overseas Investment Act 2005.

More informationPip Greenwood
Russell McVeagh
PO Box 8
AUCKLAND