Tower has concluded its strategic review, with the company's board deciding to continue executing its current business strategy under the existing ownership structure.
The review, which began in December 2023, involved discussions with various parties but did not result in any formal proposals.
Tower also announced the removal of its additional solvency margin requirement by the Reserve Bank of New Zealand, effective from August 16 2024.
This recognition of Tower's risk and capital management processes is expected to have no direct impact on dividends or other capital management actions.
The company reaffirmed its guidance for underlying net profit after tax of over $45 million for the financial year ending September 30 2024, and the board intends to pay a final dividend of 5 cents per share.
Tower's return of capital proposal, involving a mandatory share buyback of $45m, is subject to court and shareholder approval.
Further details will be communicated with the release of the full-year result in November.
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