Tower Limited (ASX:TWR) Announces Capital Return to Shareholders
Capital Return Details
Tower Limited has received initial court orders to proceed with a proposed NZ$45 million capital return to shareholders. This capital return will be presented for approval at the Annual Shareholders’ Meeting (ASM) scheduled for 11 February 2025. Tower has confirmed that this return is not in lieu of a dividend, receiving approval from the IRD.
Scheme Operations
The scheme involves the cancellation of one share for every ten shares held, with shareholders receiving NZ$1.1858 for each share cancelled. For shareholders in Australia, funds will be converted to Australian dollars at an approved exchange rate on or about the record date. The Board will ensure that Tower meets solvency and regulatory capital requirements before the cancellation is enacted, expected around March 2025.
Next Steps
Upon receiving shareholder approval, Tower plans to seek final orders from the court in mid-March 2025. Pending these orders and compliance with the Key Scheme Condition, payments from the capital return are projected for early April 2025. This announcement has been authorised by Michael Stiassny, Board Chair.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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