Standard Life has completed the sale of its Canadian companies, Standard Life Financial and Standard Life Investments, to Manulife Financial Corporation subsidiary The Manufacturers Life Insurance Company, for a total cash consideration of C$4bn (£2.2bn).
The transaction includes a global collaboration agreement where Manulife will seek to distribute Standard Life Investments’ funds in Canada, the US and Asia.
The Scotland-headquartered asset manager stated that it will also “explore other potential opportunities for collaboration” with Manulife between their respective investment capabilities and distribution platforms.
As previously reported, Standard Life intends to propose a return of value of around £1.75bn (equivalent to 73p per share) to shareholders by way of a share scheme, which will be accompanied by a share consolidation.
The share consolidation is intended to reduce the number of shares in issue by approximately the same ratio as the return of value per share. This year’s final dividend will be paid on the resulting number of ordinary shares.