£2bn Insurance Business Sell-Off Of Standard Life Aberdeen Backed By Shareholders

Today, the shareholders of Standard Life Aberdeen overwhelmingly expressed their support for the £2bn sale of the insurance business of the company to Phoenix.

During the general meeting of the firm that was held today, 99.26 percent of the voters supported the said deal which will see Standard Life Assurance Limited (SLAL), the insurance arm of the company, acquired by Phoenix.

Phoenix has agreed to pay £1.971 billion to Standard Life Aberdeen upon the completion of the said deal which excludes a dividend amounting to £312 million that is paid by SLAL to Standard Life Aberdeen before the completion.

The shareholders also voted by over 99 percent of voters to support a capital return amounting to £1 billion via a B share scheme, in which new B shares will be granted which can then be redeemed for cash.

They also supported a capital return of up to £750 million by way of share buyback via on-market purchases.

An almost 20 percent stake will be retained by Standard Life Aberdeen in the merged company and it was announced today that Barry O’Dwyer, the pensions boss of the company, and Campbell Fleming, the head of distribution at Aberdeen Standard Investments, will take some seats on the board of Phoenix.

Sir Gerry Grimstone, the Chairman of Standard Life Aberdeen, stated: “I’m pleased our shareholders have voted so decisively in favour of our proposals today. The sale of our UK and European insurance business to Phoenix is an important milestone in our company’s history and marks a decisive break from our past as an insurer.”

He added: “It is an excellent result and demonstrates our shareholders’ overwhelming support for our ambition to become one of the world’s leading investment companies.”