Vero Insurance New Zealand Limited, a wholly-owned subsidiary of
Suncorp Group Limited, has announced that
Tower Limited has sent it a notice of termination of a scheme implementation agreement.
As a result, Suncorp said it will no longer be proceeding with its appeal of the Commerce Commission’s decision to decline its application to acquire Tower.
According to Suncorp, it is now focused on maximising the value of its Tower shareholding.
In a statement, Tower said its board of directors is continuing to develop plans to raise further capital and will update the market with its full year-results on Nov. 14.
In June, Vero signed a scheme implementation agreement with Tower for its proposal to acquire all of Tower’s outstanding shares for $1.40 per share, which the Commerce Commission has declined – both insurers lodged independent court appeals against the decision.
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