Proactive Investors - Run By Investors For Investors

Standard Life Aberdeen plans to return £1.75bn to shareholders

The FTSE 100-listed firm has said it will return £1bn to shareholders by way of a B share scheme, involving the issue of new B shares to shareholders which the company will subsequently redeem for cash
money
Standard Life Aberdeen said the balance of proceeds will be used to retire a proportion of company’s debt of £1.9bn

Standard Life Aberdeen PLC (LON:SL.) has said it plans to return £1.75bn to shareholders after the sale of its UK and European insurance business to Phoenix Group, ahead of today’s annual general meeting.

The FTSE 100-listed firm has said it will return £1bn to shareholders by way of a B share scheme, involving the issue of new B shares to shareholders which the company will subsequently redeem for cash.

READ: Barclays a fan of recent Standard Life Aberdeen merger as it double upgrades investment giant

The company proposed that the B share scheme will be accompanied by a share consolidation to maintain share prices at comparable levels.

The company said the remaining £750mln will be returned by way of a share buyback programme, involving the on-market purchase of Standard Life Aberdeen shares, which will take place after the completion of the B share scheme and share consolidation.  

Standard Life Aberdeen said the balance of proceeds from the proposed transaction, combined with existing liquidity within the group, will be used to retire a proportion of company’s outstanding debt of £1.9bn and support investment and other general corporate purposes.

Standard Life Aberdeen announced the £3.24bn transaction in February, and it is expected to be completed in the third quarter of 2018 and the proposed return of capital is expected to take place on 25 June 2018.

Gerry Grimstone, chairman of Standard Life Aberdeen, said: "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.”

He added: “Our proposal to return up to £1.75bn 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."

View full SLA profile View Profile

Standard Life Aberdeen PLC Timeline

Related Articles

APQ
April 12 2019
On the back of last year’s sell-off, APQ sees good value in emerging markets, particularly in Turkey, Argentina and Brazil.
Blockchain technology
March 22 2019
The firm’s services include the authoring of industry standard White Papers, technical aspects, design and implementation of market strategies and business appraisals
1549886982_asia.jpg
February 28 2019
Investment company Adamas, under Harmony Capital’s management, is focused on opportunities in the SME sector

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use