TWR - Tower Insurance.

[trader_jackson]

Congratulations to Tower on running a fair, rapid and successful capital raising for all shareholders. They have shown others (cough EBOS, Turners) how it should be done. Whole process from start to finish took less than a month, so lets not have speed used as an excuse to screw small shareholders via placements or SPPs again.

On a side note, anyone care to explain how Westpac increased their stake from 5.44% to 6.5% paying only 19.5 cents a share?!?

Transaction Type: On-market sales and purchases
Period: 21/9/2017 to 21/10/2019
Shares: 12,741,133
Consideration: $2,484,516.88

Average price per share: 2,484,516.88 / 12,741,133 = 19.5 cents a share

Share price range in this period was between 66 and 70 cents and the rights price was 56 cents.

http://nzx-prod-s7fsd7f98s.s3-websit...284/310668.pdf

Interesting... they now hold 8% after the rights issue

[macduffy]

http://nzx-prod-s7fsd7f98s.s3-websit...284/310668.pdf

Interesting... they now hold 8% after the rights issue

More accurately, I think, to say that various Westpac nominee companies and unit trusts managed by Westpac subsidiary BT Fund Management, now hold 8% after the rights issue.

[Independent Observer AUNZ]

Good to see all Tower directors taking up their rights allocations, though surprising how few they own (except Michael Stiassny).

Director Marcus Nagel took up his rights to take his grand total to 62 shares!

Constitutional requirement for director to own shares... and he is a representative for Bain who need to be careful with their 19.99% shareholding not to inadvertently breach the takeovers requirements.

[Jaa]

Constitutional requirement for director to own shares... and he is a representative for Bain who need to be careful with their 19.99% shareholding not to inadvertently breach the takeovers requirements.

Thanks for that, didn't realise Bain had a board rep.

Frustrating to see Westpac et al, Salt Funds Management and other high rollers helping themselves to loads of extra 56cent shares. Why wasn't that option presented first to long suffering existing shareholders via a pro-rata over-subscription facility?

Until the NZX and NZ directors understand that a market needs to be fair and equitable to attract broad based support I fear the NZX and companies listed on it will continue to struggle.

[Independent Observer AUNZ]

Thanks for that, didn't realise Bain had a board rep.

Frustrating to see Westpac et al, Salt Funds Management and other high rollers helping themselves to loads of extra 56cent shares. Why wasn't that option presented first to long suffering existing shareholders via a pro-rata over-subscription facility?

Until the NZX and NZ directors understand that a market needs to be fair and equitable to attract broad based support I fear the NZX and companies listed on it will continue to struggle.

Yes I was disappointed too - others have offered that e.g. I think Steel & Tube did and it worked well for shareholders.

[boysy]

Decent volume of late heading into the AGM

[Independent Observer AUNZ]

Decent volume of late heading into the AGM

??? The Tower ASM isn't until Feb or March most years.

Maybe you mean while we await Full Year Results announcement which is due in November sometime, true - but there won't be many surprises with the disclosure that occurred re: the capital raise and the delay of any dividend accordingly.

Regardless, the volume doesn't seem substantially different to the ordinary trend from what I'm looking at - where are you seeing additional volume (apart from the capital raise?)

[winner69]

In line with expectations

Not too bullish about F20 though

http://nzx-prod-s7fsd7f98s.s3-websit...557/312189.pdf

[trader_jackson]

In line with expectations

Not too bullish about F20 though

http://nzx-prod-s7fsd7f98s.s3-websit...557/312189.pdf

I reckon tower are doing a heartland... putting expectations low but we all know they are going to smash it (although the share price certainly doesn't believe either of them these days)

Remember this time last year in FY18 results announcement they said underlying NPAT in FY19 is in excess of $22m... was actually $27.4m.
So when they say $27 - $30m, we know its going to be at least $32m (and hopefully we get a big juicy dividend as well)

[Independent Observer AUNZ]

I reckon tower are doing a heartland... putting expectations low but we all know they are going to smash it (although the share price certainly doesn't believe either of them these days)

Remember this time last year in FY18 results announcement they said underlying NPAT in FY19 is in excess of $22m... was actually $27.4m.
So when they say $27 - $30m, we know its going to be at least $32m (and hopefully we get a big juicy dividend as well)

If you look at the details, it is all about the weather and they 'assume' that everything up to their reinsurance program will be spent on moderate catastrophe events. If the weather is good for 12 months and no catastrophe events, there's a solid circa 10m bump available there. But given where the climate seems to be heading at the moment - I wouldn't be expecting to bank it every year and that's why they don't set expectations on the basis of having it available.