29 May 2018 – update on proposed transaction with Phoenix
Standard Life Aberdeen has provided an update regarding the proposed sale of its UK and European insurance business to Phoenix Group. There is a proposed return of capital of up to £1.75bn. Of this, £1.0bn is set to be returned to shareholders by way of a B share scheme, equating to a minimum of 33.4p per share based on current expectations. The remaining amount of up to £750m is to be returned by way of a share buyback programme. In terms of timing, a general meeting for Standard Life Aberdeen shareholders to approve the proposed transaction and the proposed return of capital is expected to be held on 25 June. The shares are out of favour and the current level appears to be too low. We rate the shares as a BUY.