TWR - Tower Insurance.

[Rawz]

maybe ? similar worded statements by amp

"AMP today announced a strategic review to explore options to maximize shareholder value and optimize its capital structure."
Outcome: AMP ultimately agreed to a takeover offer from Ares Management, a US-based private equity firm, in a deal worth AU$6.3 billion.
Similarities:

• Both Tower Limited and AMP Limited used similar language in their statements, mentioning a strategic review to "maximize shareholder value" and "optimize capital structure".

• Both companies engaged financial advisers to assist with the review process.
• Both reviews were supported by significant shareholders.

interesting! thanks for sharing.

what was the valuation method used? book value multiple or earnings multiple?

[winner69]

That Pacific International outfit will be involved in any Corp activity

[bull....]

interesting! thanks for sharing.

what was the valuation method used? book value multiple or earnings multiple?

Valuation Methods Used in AMP Sale


According to publicly available information, the valuation methods used in the AMP sale to Ares Management included:


Discounted Cash Flow (DCF) Analysis
Comparable Companies Analysis (CCA)
Precedent Transactions Analysis (PTA)


Asset-Based Valuation


The valuation multiples reportedly used in the AMP sale included:


Price-to-Earnings (P/E) Ratio: 12.5x - 15x


Price-to-Book (P/B) Ratio: 1.2x - 1.5x


Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: 8x - 10x
Sale Price


the sale price of AU$6.3 billion represented a:
26% premium to AMP's closing share price on the day before the announcement
20% premium to AMP's 30-day volume-weighted average price (VWAP)

[bull....]

qbe had a takeover of westfarmers general insurance in 2021

price to book of 1.43x
pe multiple of 14.5x
ev to ebitda 10.3x

[Sideshow Bob]

Sure shareholders jumped at the chance to get a bit of a premium on current shareholders, but longterm holders have taken a pounding (although should have exited years ago).

Screenshot 2024-07-25 094208.jpg

Don't know much about AMP, except they were beyond useless when I had my Kiwisaver with them, when they took over my provider.

[Leemsip]

Confidence shaken to the core today. Down a couple of cents... is this the turn? Is the insurance biz not profitable any more? Does someone know about an impending disaster before the dividends come in? Is Stiassny still alive and why hasnt the company announced anything to mitigate this loss of confidence?

[percy]

The Tower share price falls on low volume,while it rises on high volume.The share price remains in a strong uptrend .

[sb9]

Looks like Salt are feeding the sell side at regular intervals.

[bull....]

3m of there sales was a transfer . so they hardly sold any


this is what they said in june

By far the largest positive was our large, long-held position in
Tower (TWR, +9.6%). With the benefit of knowing in hindsight
about biblical floods and rampant claims of cost inflation, we
may have been a couple of years too early, but it is working in
spades now. The new news was that TWR upgraded their
guidance again for 24-year NPAT to be greater than $40m
rather than greater than $35m previously. We found this
upgraded guidance a little odd as it came only two weeks after
their interim result and nothing obvious changed in the
interim.
Our take is it still looks conservative and that it is
before the huge potential impact of their large events
allowance. If there are no major calamities before endSeptember, NPAT will lift by a further $32m – massive in the
context of a $330m market cap.

they then say

In our view, the market materially mis-forecasts TWR as having to eat their full large
events allowance every year, when history suggests it is far
less frequent than this. ( meaning undervalue it )

[sb9]

Thanks bull, I just skim read it. I’m picking we may see late flurry to finish slightly up or flat for the day.