30th May 2018 08:02
LONDON (Alliance News) - Phoenix Group Holdings on Wednesday launched a fully underwritten GBP950 million rights issue to part fund its Standard Life Assurance Ltd purchase from Standard Life Aberdeen PLC.
Phoenix will pay a total cash consideration of GBP1.97 billion for the deal - first announced in February of this year - with this figure excluding a dividend of GBP312 million paid by Standard Life Assurance to Standard Life Aberdeen prior to completion.
The rights issue will be on the basis of 7 new shares at 518 pence for every 15 existing shares, and will result in the issue of 183.5 million shares, of 47% of Phoenix's existing share capital.
The issue price represents a 25% discount to the theoretical ex-rights price of 691p based on Tuesday's closing price.
The issue is fully underwritten by HSBC Bank PLC, Merrill Lynch International, JP Morgan Securities PLC and BNP Paribas.
The acquisition constitutes a reverse takeover under listing rules and, accordingly, it is conditional on Phoenix shareholder approval at a general meeting to be held on June 25.
Wednesday's rights issue announcement comes after Standard Life Aberdeen on Tuesday said it intends to return up to GBP1.75 billion to shareholders following the sale of its UK & European insurance business to Phoenix.
Standard Life said GBP1.0 billion is to be returned by way of a B share scheme - a minimum of 33.4 pence per share based on current expectations - and the remaining up to GBP750 million via a share buyback programme.
Related Shares:
SLA.LPhoenix Group Holdings