February 23, 2018 / 7:13 AM / 8 months ago

BRIEF-Phoenix To Buy Standard Life Aberdeen's UK, Europe Life Insurance Business

Feb 23 (Reuters) - PHOENIX GROUP HOLDINGS:

* ACQUISITION OF STANDARD LIFE ASSURANCE

* PROPOSED ACQUISITION OF STANDARD LIFE ASSURANCE AND REINFORCED STRATEGIC PARTNERSHIP WITH STANDARD LIFE ABERDEEN PLC

* ACQUISITION ENCOMPASSES ALL OF SLA’S UK AND EUROPEAN LIFE INSURANCE BUSINESS. SLA WILL RETAIN ITS UK RETAIL PLATFORMS AND ADVICE BUSINESS

* ‍SLA TO BUY SHAREHOLDING OF ABOUT 19.99 PCT IN ENLARGED GROUP WITH TWO DIRECTORS APPOINTED BY SLA JOINING BOARD OF PHOENIX​

* ACQUISITION CREATES AN ENLARGED GROUP WITH £240 BILLION OF LEGACY ASSETS AND 10.4 MILLION POLICYHOLDERS

* MATERIALLY ENHANCES GROUP’S CASHFLOWS OVER TIM

* ‍DEAL WITH STANDARD LIFE FOR TOTAL CONSIDERATION OF £2,930M​

* ACQUISITION IS EXPECTED TO GENERATE A TOTAL OF £5.5 BILLION OF ADDITIONAL AGGREGATE CASHFLOWS

* ‍INTEGRATION OF STANDARD LIFE ASSURANCE IS EXPECTED TO CREATE NET SYNERGIES OF £720 MILLION​

* ADDITIONAL CASH GENERATION SUPPORTS A PROPOSED INCREASE IN ANNUALISED COST OF DIVIDEND TO £338 MILLION FROM DATE OF 2018 FINAL DIVIDEND

* INCREASES PHOENIX’S POTENTIAL MARKET FROM C.£380 BILLION OF CLOSED LIFE FUND ASSETS IN UK TO APPROXIMATELY £540 BILLION OF ASSETS ACROSS UK

* POST COMPLETION, OVER 57% OF ENLARGED PHOENIX’S HEADCOUNT WILL BE BASED IN EDINBURGH

* PHOENIX HAS INDICATED TO SLA ITS LONG-TERM INTENTION TO MAINTAIN OPERATIONAL HEADQUARTERS IN EDINBURGH

* PHOENIX-DEAL TO BE FINANCED THROUGH CASH CONSIDERATION OF £1,971 MILLION, ISSUANCE TO SLA OF PHOENIX SHARES OF ABOUT 19.99% OF ENLARGED SHARE OF PHOENIX AFTER DEAL

* COMPLETION OF ACQUISITION IS EXPECTED DURING Q3 OF 2018 Source text for Eikon: Further company coverage:

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