GPG sells stake in Tower Australia

WELLINGTON, Aug 8 (Reuters) - British based investment company Guinness Peat Group Ltd (GPG.NZ: Quote, Profile, Research) (GPG.L: Quote, Profile, Research) said on Friday it had sold its 29.7 percent stake in mid-sized insurer Tower Australia (TWR.AX: Quote, Profile, Research) to Japan's Dai-ichi Mutual Life Insurance.

It said it has agreed to sell its stake in three tranches totalling more than 100 million shares at A$3.75 a share.

The proceeds would be used in GPG's ordinary business.

Shares GPG last traded up 4.1 percent at NZ$1.52. Shares in Tower Australia last traded at A$1.71.

GPG is the investment vehicle of veteran corporate raider Sir Ron Brierley, and although it is British based it has a significant number of NZ shareholders. ($1=NZ$1.40 A$1.10)