New Zealand company Tower has commissioned a review to decide whether to spin off its wealth management arm in Australia (Bridges and Tower Trust) through a separate listing on the Australian Stock Exchange. Existing Tower shareholders would probably retain ownership in the business.

Following a review of Tower’s business portfolio, the company says it believes the market has difficulty recognising the wealth management arm as an Australian entity and is confusing it with the wider Tower group.

Early this year the company showed signs of recovery from a series of heavy losses. Directors believe the proposed spin-off would mean a more focused strategy for the separately listed entities, thereby enhancing shareholder value.

Chairman Olaf O’Duill says the spin-off will help the Australian businesses gain recognition.