Where to Now for New Standard Shareholders?

The ScotsmanJune 03, 2006

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Summary


SSTANDARD Life members this week voted overwhelmingly in favour of the group's demutualisation plans, with 98 per cent of a near- 1.6 million who cast their vote giving it the thumbs-up. But the key issues now for policyholders are whether to hold on to their share entitlement post-flotation, pencilled in for July, and what to do with their Standard Life policies.

The 2.4 million eligible members - two-thirds of whom placed a vote - are due to receive a fixed allocation of 185 shares, as well as a further variable element based on policy type, value and length held. Pay-outs are expected to average GBP 1,700, but that figure is skewed by some hefty awards to large investors. Around half of eligible members will receive a more modest GBP 500-1,000.

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Extract


Where to Now for New Standard Shareholders?

The company hopes to create a large retail presence: its total member base of 2.5 million and 4.5 million other customers will be offered the opportunity to buy more shares at a preferential rate. That will outlined in an offer document on 15 June, but industry sources believe the discount will be about 5 per cent. Customers will...

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