UPDTATE 1-Friends Provident gets go-ahead for F&C demerger

* Investors get 1 F&C share for every 10 Friends shares

* F&C shares up 1.8 pct excluding impact of demerger

LONDON, July 3 (Reuters) - British life insurer Friends Provident FP.L will this month hand its majority stake in asset manager F&C (FCAM.L) to its own investors after receiving final court approval for the plan.

Friends shareholders will receive one F&C share for every 10 Friends shares they hold, with the transfer to be completed by July 17 at the latest, the company said on in a statement on Friday.

Friends shares were changing hands at 62.7 pence by 1035 GMT, down 5.3 pence from Thursday's closing price of 68 pence.

Analysts had expected the stock to fall by about 6.5 pence to reflect the loss of income from Friends' 52 percent F&C stake.

Excluding the impact of the demerger, Friends shares were up 1.8 pct.

"I think it'll please people that this has finally gone through," said Shore Capital analyst Eamonn Flanagan.