Major investor Devon slashes stake in Tower Insurance
Devon Funds Management has reduced its holding to 13.1 million shares.
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A major investor in insurance business Tower has slashed its stake from just under 12% to just under 8% as the insurer's share price slumped and it issued a poor first half update earlier this month.
Auckland-based Devon Funds Management has reduced its holding to 13.1 million shares, or 7.8% of the shares on issue, from 20.2 million shares, or 11.9% of the company, according to a substantial shareholder notice published to the NZX.
The shares were sold between March 14 and May 27. Tower shares closed at $1.76 on March 14 and fell over the period to $1.465 on May 27.
On May 24, Tower reported a net loss of $8.7 million in the six months to the end of March, from a $4.9 million loss a year earlier. Its results included a $19.6 million impairment charge on its IT system after a review found it was limiting the company's "high-performance ambitions" according to chairman Michael Stiassny. Tower reported higher claims and static premiums.
Devon had already cut its stake in Tower to 11.9% from 13% between January 6 and March 2, a period in which the value of the shares fell to $1.59 from $1.90.
On its website, Devon claims to manage more than $1 billion in assets on behalf of clients.
By mid-afternoon today, Tower shares were up 4.4%, or 6.5c, at $1.53, although have fallen 22.8% since January and are down 30.6% on a year ago.
(BusinessDesk)
Edwin Mitson
Mon, 30 May 2016
Mon, 30 May 2016
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Major investor Devon slashes stake in Tower Insurance
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