TWR - Tower Insurance.

[macduffy]

I not received any offer documents yet , should they of arrived by now?

I havn't got mine. Still on their way I would think. It seems to be the usual thing these days for rights trading to commence before documents arrive.

[biker]

Documents will be despatched 7/9/09. Rts trading ends on NZX 21/9/09. Offer closes 23/7/09.

[ratkin]

Thx . i will be taking up the rights and not selling them

[shawsie]

the more I look at this the less I like it. shareholders (disc- not a holder) are asked to front with 1/3rd more cash for no reason.

if twr mgmt want to buy, why not put it in train, then get holders to stump up the cash? at that point you know what you are getting for your bucks. sure better than borrowing in this climate, but raising cap for its own sake, and GJBW and GPG clipping the ticket,

holders may not appreciate my comments, fair enough. when I heard of the issue I looked for positives (earlier posts), perhaps its secret squirrel, and I will stand corrected, but IMHO, time to take out the trash.

[macduffy]

Fair point, shawsie.
There's a lot of the old GPG maxim of " have faith in management to do the smart thing" about this issue, and GPG's companies don't have a great track record recently.
I'd have a bit more confidence if plans for employing this new capital were to be articulated before the issue closes, but I suppose that's wishful thinking?

[Hoop]

the more I look at this the less I like it. shareholders (disc- not a holder) are asked to front with 1/3rd more cash for no reason.

if twr mgmt want to buy, why not put it in train, then get holders to stump up the cash? at that point you know what you are getting for your bucks. sure better than borrowing in this climate, but raising cap for its own sake, and GJBW and GPG clipping the ticket,

holders may not appreciate my comments, fair enough. when I heard of the issue I looked for positives (earlier posts), perhaps its secret squirrel, and I will stand corrected, but IMHO, time to take out the trash.

Quote "....holders may not appreciate my comments, fair enough....."

I'm a holder and I appreciate your comments...a good thought provoking post.
Investors don't enjoy investing their money on blind faith with the perception that they will lose out to the big guys on this deal...I hope some senior Tower Managers read this TWR thread and think more about their shareholders... but from their recent actions I doubt it.

[macduffy]

They might use the 81 mill raised to retire the 81 mill raised previously. (Just thinking out loud).

I think the original announcement talked about " organic growth issues" - whatever that means!

[ratkin]

Is there much point in applying for extra shares ?

[macduffy]

Is there much point in applying for extra shares ?

There probably is.

Tower still has a lot of "passive" small shareholders from the demutualisation and it's possible that a higher proportion than usual will either ignore the issue, not understand it, not be able to afford it, and/or have insufficient rights to warrant selling and paying minimum brokerage.

Not sure I would want too many more, although there is value there with the rights selling at 26c.

[Balance]

No point buying during rights issue. Too much profit at current sp for underwriters. They will supply stock post-rights issue to take their profits.

Can always count upon at least 5% shortfall. In this case, $4m plus of cheap stock for underwriters to make a profit on. At $1.60, 20% profit on each share.