Brought to you by:

GPG sells stake in Tower Australia

Japanese life insurer Dai-ichi Mutual Life Insurance Company made its first foray into the Australian insurance market last week acquiring a 29.7% stake in Tower Australia.

The deal with Guinness Peat Group (GPG) will see over 100 million shares change hands at a price of $3.75. The deal is subject to regulator approval.

Dai-ichi Mutual is Japan’s oldest life insurance company and third-largest by revenue.

GPG agreed terms with the insurer following a successful partial takeover of Tower NZ in June. That deal allowed GPG to lift its stake in the insurer from 19.7% to 35%.