The combined sharemarket value of Tower New Zealand and Tower Australia was yesterday creeping back towards the group's market capitalisation before the split.
A period of confused and volatile trading immediately after the split - which management said was intended to "unlock value" - saw their combined value
sink by up to 10 per cent.
Tower said investors might have been confused by incorrect Tower NZ price data produced by the ASX, while analysts attributed the confusion to an independent valuation contained in demerger information provided by the company.
However, last night Tower Australia shares closed at A$2.44 on the ASX and Tower NZ's dual listed shares closed at $2.15.
That meant an investor who owned 10,000 Tower shares before the demerger now had an investment in both companies - including entitlements to the upcoming rights issue in Tower Australia - worth $32,305 or just 1.5 per cent down on their pre-split investment.
Then and now
The value of 10,000 Tower shares
Before the split
* 10,000 shares at $3.28.
* Total value: $32,800.
After the split
* 5240 Tower NZ shares at $2.15: Worth $11,266.
* 6511 Tower Australia shares at A$2.44: Worth A$15,887.
* 2780 entitlements to buy Tower Australia shares for A$1.60 at A$0.84: Worth A$2335.
* Total value: $32,305.
