Guinness Peat Group (GPG) has announced it will sell down its stakes in Clearview and Tower New Zealand.

The move comes as a result of an independent committee’s examination of ways to return value to shareholders after GPG shares traded at a 30% discount to net asset value.

The outcome of the review was a decision to “pursue an orderly realisation of its investments” although the committee has not recommended a timeframe.

GPG owns 47.9% of Clearview, which was valued at £64 million ($102 million) in the June 2010 half-year accounts, and 35% of Tower. According to the same half-year figures, Tower made a £5 million ($8 million) contribution to GPG’s earnings.

Clearview MD Simon Swanson told insuranceNEWS.com.au the GPG move will not affect the way the business will operate.

“For us it is no change and no dramas,” he said. “Clearview is a well-run company and the selldown will look after itself.”

Tower Chairman Tony Gibbs welcomed the move by GPG, saying it has been expected for some time.

“It is reassuring that the announcement confirms GPG’s value realisation will be undertaken in an orderly manner and over a timeframe appropriate to each investment,” he said.

GPG Executive Director Gary Weiss says while the company will not make any new investments in companies, it may still contribute capital to companies it owns stakes in to enhance an exit value.

“We will continue to work closely with investee companies to enhance and extract value,” he said.

He has ruled out a quick sale for the stakes as this is unlikely to achieve the optimal return for GPG shareholders.