Tower restructure Australian operations

By NZPA

Friday 2nd August 2002

Australasian financial services company Tower Ltd is compacting five of its Australian units into one.

Group chief executive Keith Taylor said today Tower had decided that, with the impending sale of its personal and corporate trust business, the remaining Australian wealth management and risk insurance businesses would perform more effectively as a single operation.

Mr Taylor said five operations would merge to form Tower Australia, and a chief executive would be appointed.

Bridges and Tower Asset Management will not be part of the restructure, and will retain their existing boards and management teams.

Tower hopes to sell its corporate trustee business in Australia and New Zealand for around $60 million to $100 million.

In December, Tower launched a new strategy focused on wealth management in Australia, while leveraging off its position in New Zealand.

Outgoing chief executive James Boonzaier said at the time that diversification had been the foundation of the company's past success. However, the company had changed its view and was aiming for a less diverse, more focused portfolio of aligned businesses.

Mr Boonzaier led Tower's expansion into Australia, where Tower now does 70 percent of its business.

Tower's share price has slipped from $5.90 in May last year to the current price around $4.10.

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