LONDON (ShareCast) - Investment firm Guinness Peat has agreed to sell its entire 29.7% stake in Tower Australia to Dai-ichi Mutual Life Insurance for up to A$376m (Australian dollar).
The group will sell 14.9% of the shares unconditionally at A$3.75 each and a further 5% will be sold at the same price subject to Australian regulatory approval. Finally, a further 9.8% will be sold, again at A$3.75, subject to approval from both Australian regulatory authorities and Tower Australian shareholders.
Guinness Peat said the sale proceeds are in the form of cash, which will be utilised in its ongoing business.
The group said two representatives on the board of Tower Australia will resign immediately.