NZ's Tower offers to buy small shareholders' shares

WELLINGTON Mon May 26, 2014 5:09pm EDT

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WELLINGTON May 27 (Reuters) - New Zealand insurance company Tower Ltd on Tuesday said it would buy shares from shareholders with fewer than 200 shares at a price of NZ$1.72 ($1.47) per share, in response to requests from some small shareholders to cancel their shares.

Tower's announcement came after it reported a 70 percent slide in profits earlier in the day.

The company has just over 20,000 small shareholders, representing 41 percent of the company's total share register. They own 2.5 million shares, approximately 1.43 percent of current issued share capital. ($1 = 1.1688 New Zealand Dollars) (Reporting by Naomi Tajitsu; Editing by Lisa Shumaker)