Key facts
- Aberdeen sold 52m Standard Life shares for £436m.
- The sale reduced Aberdeen's stake from 10.3% to 5.2%.
- The placing price was 839p per share, a 3.7% discount to Wednesday's close.
- Standard Life shares fell 5.2% to 826p.
- Aberdeen will use proceeds to maintain a strong balance sheet and reduce debt.
Shares in Standard Life tumbled on Thursday after investment company Aberdeen offloaded half of its stake in the savings and retirement specialist for £436 million. The sale, conducted through a discounted share placing, reduces Aberdeen's holding from 10.3% to approximately 5.2% of the company's issued share capital.
The placing price of 839p per share represented a 3.7% discount to Standard Life's closing price of 871.5p on Wednesday. Standard Life was the biggest faller on the FTSE 100 in morning trading, dropping 5.2% to 826p.
Aberdeen stated it would use the proceeds in line with its capital allocation policy, including maintaining a strong balance sheet, selective investment in the business, reducing debt over time, and delivering sustainable shareholder returns. Standard Life was not involved in the placing and will receive none of the proceeds.
Aberdeen CEO Jason Windsor commented that the transaction is "further progress to simplify our group, as we seek to deliver on our ambition to become the UK’s leading Wealth and Investments business." He added that Aberdeen looks forward to continuing to deliver as a key asset management partner to Standard Life under existing arrangements.
The move follows a 17% gain in Standard Life's share price since the start of the year, as of Wednesday's close. Aberdeen's shares gained 0.6% on the news.