Standard Life Confirms Float Plans
2.4m Standard Life members to receive a windfall bonus
18th October 2005
Demutualisation for Standard Life came a step closer yesterday as the insurer's board gave its backing to plans for a stock market flotation next summer.
The plan will be put to the vote by the mutual's 24.m policyholders in May or June 2006, and if 75% or more of those who vote choose to accept demutualisation, trading on the stock market is expected to begin in July.
It is thought that the floated company will be worth between £4bn and £6bn, and members will receive a 'windfall' bonus to compensate them for their loss of membership. This windfall would be in the form of shares in the new company, which the holder could either keep or sell.
It's estimated that the average windfall value will be between £500 and £1,000, and although the details have yet to be finalised it's likely that payments will be made up of a fixed amount for each member, topped up by a bonus which will vary according to the size of the policy and the amount of time it has been held.
Read More: Money Guardian : Windfalls of up to £1,000 to follow Standard Life flotation
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Products from Standard Life : Health Insurance |
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