Sydney - the largest life insurance company in Australia, Tower Australia Group agreed a deal with Dai-ichi Life Insurance Japan worth U.S. $ 1.2 billion.
Tower as the largest independent insurance company that dominated the banks and AMP mengatakai directors unanimously recommended the offer of acquisition of $ 4 Australian dollars per share, based on Friday's close yesterday that its ownership to 47%."Valuation is attractive. The timing is somewhat surprising. In the long term Dai-ichi stake in Tower will rise to support the growth of overseas business," said Mark Daniels, Head Equity Division in Aberdeen Asset Management, which is also the owner of Tower shares.
Dai-ichi already has 29% in Tower and pioneering agreement to expand the business. For businesses in the country has been stagnant, as quoted from finance.yahoo.com.
Australian wealth and the life insurance market in Australia has become a growing segment that supports the financial services industry. Management estimates the current stock market capitalization reached U.S. $ 1.2 trillion and will grow 12% annually over the next 5 years. While income in life insurance business amounted to 12 billion Australian dollars a year.
Tower expects the deal value reaching 19.1 times earnings in 2010 to 17.1 times the amount of U.S. $ 13 billion to take over the shares of AMP.
