By Ryan Hewlett

March 31 - (The Insurer) - Trading in Tower Limited's shares was halted on Monday to allow shareholder Bain Capital to sell down its 19.9% holding in the New Zealand-based carrier.

Tower said in a stock exchange filing on Monday that it had been advised by Bain Capital that the sale of U.S. private equity firm’s stake would need to be “broadly marketed,” necessitating a temporary halt in the trading of the insurer’s shares.

The U.S. private equity firm bought into Tower in March 2018 after it purchased the 68.3 million shares, equal to a 19.9% shareholding, from Suncorp subsidiary Veto Insurance for around $50 million.

“This is a large relative holding, equivalent to approximately 19.9% of the shares in Tower, and Tower is advised that it is equivalent to over 200 days trading based on Tower’s average daily trading liquidity,” Tower said in the statement.

Shares in Tower closed at A$1.35 apiece on Friday. Tower’s shares are listed on both the NZX and ASX and are currently trading more than 11.6% higher in the year to date.

Tower said Bain was looking to market Bain was “seeking offers” from institutional investors but also, given the size of the shareholding, eligible retail investors which include retail wealth advisors and their eligible underlying clients.

“This engagement can only be practically achieved during business hours without materially impacting execution, and therefore cannot be accomplished successfully during the weekend or outside of trading hours,” it said.

Tower said Bain Capital expects to update on the results of the sale process by no later than close of market (AEDT) on April 1, 2025.

The latest development comes after Tower in December posted a more than tenfold increase in underlying net profit after tax to NZ$83.5 million ($49.3 million) for the financial year ended September 30, 2024, with results bolstered by a reduction in large loss events.

The Auckland-headquartered insurer reported profit of NZ$74.3 million, a significant improvement compared to the NZ$1 million reported loss a year ago, which was primarily due to catastrophe event

More recently, long-serving CEO Blair Turnbull stepped down from the helm of the carrier on February 12. Chief Financial Officer Paul Johnston has taken over as interim CEO with a search for a permanent replacement ongoing.