Twin Towers may list on ASX
Tower’s wealth management business could separately list on the Australian Stock Exchange (ASX) as early as December, pending the outcome of a review of the proposed splitting of the group’s risk and wealth management operations.
However, Tower Wealth Management chief executive officer Andrew Barnes is adamant the proposed spin off of the investment group, which includes financial planning arm Bridges, is not a disguised attempt to offload the business.
“It is not a sale - of the Tower Trust business - or the Bridges business,” Barnes says.
The proposal follows an internal review of Tower’s business portfolio, which uncovered the perception within the group that the life insurance arm was a “user of capital”.
The wealth management business was viewed more in terms of “cash earnings”, Barnes says.
“I think the market will appreciate having two businesses that are each focused on their own specialised operation rather than a conglomerate business,” he says.
The group has appointed Caliburn Partnership to conduct an independent review of the proposal.
The process is expected to take four to six weeks to complete, after which the board will agree on a final structure.
The board will need shareholder approval to push ahead with any changes.
“Separation of the two business is based on the assumption that we get shareholder approval, but we’re looking towards the end of the year to early next year,” Barnes says.
Tower directors informed shareholders yesterday that as the business has moved through “a remediation phase into delivering profitable growth,” carving up the units would best access the potential value of the wealth management arm.
Bridges Financial Planning is home to 134 financial advisers servicing more than 43,000 clients according to the 2004 Money Management Top 100 Dealer Group Survey.
Towers wealth management business has $8billion in funds under management.
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