Bond issue won't deter takeover - Tower

By Phil Boeyen, ShareChat Business News Editor

Wednesday 20th February 2002

Financial services company Tower (NZSE: TWR) has changed the conditions of a bond issue to allay any concerns that it could deter a takeover bid for the company.

Tower announced plans last month to issue up to $125 million in retail bonds with an allocation for its New Zealand shareholders.

The company says it now intends that, subject to shareholder approval, the bonds will be issued by a special purpose wholly owned subsidiary company, Tower Finance Limited.

"In addition the bonds will not convey a right for Tower to require the conversion of bonds to Tower shares in the event of a takeover.

"A takeover will be deemed to have occurred once any party controls 90% or more of Tower shares. In those circumstances bondholders will be entitled to require bonds to be converted to Tower shares.

"The changes are made to dispel any suggestion that the proposed bond issue could act as a deterrent to any party considering the takeover of Tower at some future date."

The company will seek shareholder approval for the bond issue at its annual meeting next month.

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