Tower (ASX:TWR), a New Zealand-based insurance company, has received approval from the Commissioner of Inland Revenue for a proposed NZ$45 million capital return through a share buyback. The approval ensures the return won't substitute dividend payments. Conditions like shareholder and High Court approvals, as well as meeting solvency requirements, remain.
Tower (ASX:TWR) has announced a significant step towards a NZ$45 million capital return through a share buyback, following approval from the Commissioner of Inland Revenue. This step is pivotal, as it confirms the return won't replace dividends. However, the initiative is contingent upon several approvals and conditions. Shareholder approval is expected at the Annual Shareholder Meeting in early 2025, High Court approval is necessary, and the company must continue to meet solvency and prudential capital standards. The Tower Board must also confirm the prudence of the capital return. If all conditions are met, the return could occur in March 2025. The announcement highlights Tower's strategic focus on returning value to shareholders while maintaining its financial health.
The announcement was authorized by Tower Limited Chairman, Michael Stiassny.