29th May 2018 07:51
LONDON (Alliance News) - Standard Life Aberdeen PLC said on Tuesday it intends to return up to GBP1.75 billion to shareholders following the sale of its UK & European insurance business to Phoenix Group PLC.
Ahead of its annual general meeting on Tuesday, Standard Life said GBP1.0 billion is to be returned by way of a B share scheme - a minimum of 33.4p per share based on current expectations - and the remaining up to GBP750 million via a share buyback programme, following a share consolidation.
"To maintain comparability between the market price per [Standard Life Aberdeen] ordinary share before and after the implementation of the B share scheme, it is proposed that the B share scheme will be accompanied by a share consolidation," said Standard Life.
Following completion of the B share scheme and share consolidation, Standard Life will commence its share buyback.
The proposed sale - of Standard Life Assurance Ltd and Vebnet Ltd to Phoenix for GBP3.24 billion - is expected to complete in the third quarter of 2018.
The FTSE 100-listed firm said it expects that there to be surplus capital within the group following receipt of proceeds from the Phoenix transaction and anticipated lower capital requirements.
There will be a general meeting, expected to be held on June 25, for shareholders to approve the transaction with Phoenix and the proposed return of capital.
"The last year has been a period of significant change for Standard Life Aberdeen with the proposed sale of the UK and European insurance businesses completing our transformation to a capital light investment company," said Chairman Gerry Grimstone.
"The cash generated from the sale will enable us to continue to invest in the development of our business and also to return surplus capital to shareholders. Our proposal to return up to GBP1.75 billion by way of a B share scheme and share buybacks represents over 15% of our market capitalisation at close of business on 25 May 2018, and would extend our long-running track record of returning surplus cash to shareholders," Grimstone added.
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