27th Jan 2022 17:26
(Alliance News) -Â Abrdn PLC on Thursday said it plans to sell part of its stake in insurance company Phoenix Group Holdings PLC and return the proceeds to shareholders.
Abrdn is planning to sell around 40 million shares in Phoenix, representing a 4% stake, out of the 144.1 million shares it currently owns. The sale will take its stake in Phoenix down to 10.4% from 14.4% currently.
The asset manager said it has a "strong capital position" and so plans to return the proceeds of the stake sale to shareholders, with the method and timing to be announced after its results in March.
"The company takes a disciplined approach to the management of its capital resources and will continue to invest in the business to accelerate its growth strategy and deliver long term value for shareholders," the FTSE 100 constituent said.
Abrdn stressed its "commitment" to its strategic partnership with Phoenix.
"Our strategic partnership with Phoenix, the largest life and pensions consolidator in Europe, remains important for us, as evidenced by the simplified and extended relationship we announced in February 2021," said Chief Executive Stephen Bird.
"Through our disciplined management of capital, I am pleased that we are well positioned to return the proceeds of this transaction to shareholders," he added.
Goldman Sachs Group Inc has been appointed by the company as sole global coordinator and bookrunner for the placing. Phoenix will not receive any proceeds from the placing.
Shares in Abrdn closed 1.2% lower at 238.20 pence on Thursday in London, while Phoenix Group ended 0.7% higher at 686.20 pence.
By Lucy Heming;Â [email protected]
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