Tower Investment in Australia

Guinness Peat Group PLC 03 December 2004 GUINNESS PEAT GROUP plc ANNOUNCEMENT Guinness Peat Group plc ("GPG") announces that it has entered into an underwriting agreement for an issue of shares in Australian Wealth Management Limited ("AWM") consequent upon a transaction in Australia involving Tower Limited ("Tower"), a New Zealand company in which GPG has a 19.9% shareholding. Tower is demerging its wealth management businesses in Australia into AWM, a newly incorporated company. As part of the funding arrangements for the purchase of the AWM businesses, AWM will offer 162.6 million shares to its initial shareholders on the basis of entitlements to acquire 1.355 new AWM shares for every 1 AWM share held. GPG has agreed to underwrite (or procure the underwriting of) at a price of A$0.80 per share any of these AWM shares that are not taken up by the AWM shareholders. As a consequence of this transaction, GPG will acquire a minimum of 19.9% of AWM. If it is required to meet its underwriting obligations in full, GPG would acquire a further 131.9 million AWM shares for a cash consideration of A$105.5 million (£44 million) and will then hold 186.5 million AWM shares or 66% of the issued AWM share capital. AWM has applied for a listing on the Australian Stock Exchange. On a pro forma basis for the year ended 30 September 2004, the AWM businesses had total operating revenue of A$84.3 million and a profit before tax and goodwill amortisation of A$21.9 million Tower has issued its own Announcement in respect of this transaction. This can be found on the New Zealand Stock Exchange website on J R Russell Company Secretary 3 December 2004 This information is provided by RNS The company news service from the London Stock Exchange


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