A meeting was held in Bishopsgate on 3 October for shareholders who endorsed a new global collaboration agreement that promises to pay them dividends totalling £1.75bn ($2.8bn; €2.3bn), equivalent to 73p per share.
The proceeds are said to be a highly attractive value for shareholders, reflecting the strong performance of the Canadian business.
Shareholders based in the UK will have the flexibility to receive their proceeds as income or capital using a B/C share scheme.
The sale of the Canadian strand of its business to the Manufacturers Life Insurance Company (MLC), a subsidiary of Manulife, is expected to reduce the long-term savings and investment company’s exposure to spread/risk income, enhance the group’s medium-term earnings profile and increase earnings per share.
Standard Life’s investment expertise will continue to be available to customers through the expanded relationship with Manulife.
“Ideally positioned”
David Nish, group chief executive of Standard Life, said Manulife is “ideally positioned” to continue to support its customers and clients in Canada and drive the business forward, while also increasing access to distribution globally.
The transaction is expected to be completed in the first quarter of 2015, provided it is approved by Canadian regulatory authorities including the Canadian Competition Bureau.
