Standard Life confirms sale of Canadian business
By , 2 Feb 15
Standard Life has confirmed the sale of its Canadian business for £2.2bn (C$4.0bn, 2.9bn).
Standard Life has confirmed the sale of its Canadian business for £2.2bn (C$4.0bn, 2.9bn).
Both of the firm’s Canadian companies, Standard Life Financial and Standard Life Investments, have been sold to a subsidiary of Manulife Financial Corporation: the Manufacturers Life Insurance Company.
Around £1.75bn will be returned to investors via a share scheme, which gives them an option to receive their proceeds as income or capital, and has been described as offering “highly attractive value” for shareholders.
Manulife plans to distribute Standard Life Investments’ funds in Canada, the US and Asia, by utilising a global collaboration agreement, which is also included in the transaction.
The return of value will be achieved through a share consolidation, which aims to retain the value of the share price. Both the return to shareholders and share consolidation will take place before 6 April 2015, and ahead of the final dividend record date.
The Edinburgh-headquartered insurer said the change will deepen Standard Life Investments’ distribution reach and give it the opportunity to explore further collaboration with different investment capabilities.
At the end of last month, the life company closed its office in the Dubai International Financial Centre due to regulatory changes in the region.
Tags: Canada | Manulife | Standard Life