Shares in Standard Life experienced a sharp decline on Thursday after Aberdeen disclosed plans to sell half of its remaining stake in the company. This move comes less than ten years after the merger between the two investment firms.
Aberdeen intends to reduce its stake to around 5.2 per cent through a secondary placing. This transaction is set to value Standard Life's shares at £8.39 each and is projected to raise £436m.
Following the announcement of the sale, Standard Life's shares fell by 4.9 per cent to 828p. Conversely, Aberdeen's shares saw a rise of 0.6 per cent, reaching 236p.
The FTSE 100 group stated that the funds generated from the sale would be utilised in line with its existing cash allocation policy. This policy includes maintaining a strong balance sheet, investing in the business for sustainable growth, reducing debt, and delivering returns to shareholders.