M and A
Asset Management Giant Sells Insurance Arm For $4.5 Billion
The deal will be paid in cash and shares, the groups announced late last week.
Standard Life
Aberdeen will offload its insurance arm to Phoenix Group in a
£3.2 billion ($4.5 billion) deal as the UK’s largest listed asset
manager looks to focus on its core business.
Phoenix, the £3 billion insurer, will pay £2.28 billion in cash,
and Standard Life Aberdeen will take a 19.99 per cent stake in
Phoenix Group.
The sale will see recently-merged Standard Life Aberdeen break
from its insurance roots.
Earlier this month, the merger’s merits were tested after
Standard Life Aberdeen’s shares slipped 9 per cent after Lloyds
Banking Group announced it would
pull £109 billion from the asset manager next year.
Still, Sir Gerry Grimstone, chairman of Standard Life Aberdeen,
said the sale to Phoenix "completes our transformation to a
capital light investment business".
“This transaction represents excellent value for our
shareholders, including a comprehensive and mutually beneficial
strategic relationship entered into with Phoenix Group, a
longstanding partner of the firm,” he said.
Phoenix Group has said it will keep Standard Life Aberdeen’s
insurance arm’s operational headquarters in Edinburgh.
