23rd Jan 2015 09:50
LONDON (Alliance News) - Standard Life PLC Friday said that the Canadian Minister of Finance and the country's securities authorities have approved the GBP2.2 billion sale of its Canadian business to Manulife Financial Corp, with completion of the deal expected early this year.
The pensions and investments company said it expects a subsequent windfall to shareholders to take place ahead of proposed tax changes outlined by the UK government after the deal was reported.
Standard Life is set to return about GBP1.75 billion, or 73 pence a share, to shareholders once the deal is completed, with the remainder retained for corporate purposes.
The payment to shareholders will be effected through a B/C share scheme, while the investments and life insurance business will also carry out a share consolidation that will reduce the number of shares in issue by about the the same ratio as the return of value per share to the share price.
Standard Life drew attention to changes proposed in UK Chancellor of the Exchequer's Autumn Statement, which was published in early December, to the tax treatment of special purpose share schemes. The changes to the schemes, known as B or B/C share schemes, are due to come into force from April 6.
"The company currently expects that the return to shareholders and share consolidation will take place prior to April 6, 2015, and ahead of the final dividend record date. As a consequence the final dividend would be paid on the resulting number of ordinary shares after the consolidation," Standard Life said.
The proposals are subject to shareholder approval.
Standard Life shares were up 0.6% at 404.30 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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