The spin-off of Tower’s Australian Wealth Management (AWM) business is in the best interests of shareholders, according to an independent report by corporate advisory firm Grant Samuel.

Tower Chairman Olaf O’Duill says the board unanimously recommends the proposal.

“The spin-off will simplify the structure of both companies, making it easier to evaluate their performance and potential.”

Grant Samuel, which was commissioned to prepare its report to assist shareholders before the spin-off vote on January 25, said it found the offer is in the best interests of shareholders and recommended a vote in favour. However, it alerted investors to ongoing costs of $2 million a year for AWM, on top of upfront costs of $10 million.

The company has set a February 15 listing date on the Australian Stock Exchange for AWM.

Tower plans to spend the $89 million from the spin-off on rapid business growth and intends to look for acquisitions.