Tower plans $45m capital return to shareholders

Tower has received initial court orders for its proposed $45 million capital return to shareholders.

The company announced on Sept 6, 2024, that it plans to conduct the capital return through a court-approved scheme of arrangement.

The scheme involves the cancellation of one share for every 10 shares held by shareholders on the record date, along with the payment of a cash sum of $1.1858 for each share cancelled.

Tower's shareholders will have the opportunity to consider and approve the capital return at the annual shareholder meeting on Feb 11, 2025.

The company has already obtained approval from the Inland Revenue Department, confirming that no part of the capital return is in lieu of a dividend.

Tower said the scheme is subject to the board's satisfaction with solvency and regulatory capital requirements.

If shareholder approval is received, Tower will seek final orders from the court, with the payment of the capital return expected to be made in early April 2025.