Standard Life Assurance Co. has set May 31 as the date for its demutualization vote.
The UK insurance company also confirmed that eligible members will receive a fixed allocation of shares and that most eligible members will also receive a variable allocation of shares which will take into account various factors including policy type, the size of their with profits investments as at March 30, 2004, and the length of time those investments have been continuously invested.
For legal and practical reasons some eligible members – for example, some overseas members – will not be able to receive shares, it noted. They will receive cash instead.
The planned vote on demutualization is scheduled to take place at a Special General Meeting at the Edinburgh International Conference Centre on May 31. Prior to this, members will receive a vote and proposal pack, which Standard Life plans to send out to members and other policyholders by the end of April.
In this pack members will receive their voting form, share allocation statement and the proposal document. Subject to the requisite Court approval being received to begin the mailing, the proposal document together with the company’s accounts will be published on its website on April 18.
If at least 75% of the members who vote, vote in favour of the proposal Standard Life plans to seek approval to demutualize from the Court of Session in Scotland in June. If the proposal is approved by the court, and all relevant legal, regulatory and other processes are completed satisfactorily, Standard Life will demutualize and list on the London Stock Exchange as soon as possible. Standard Life plc will be the new parent company of the Standard Life group. On flotation Standard Life intends to raise new capital to support and develop the group’s business.
“The board urges voting members to use their vote. Every voting member has one vote and an equal say so each vote can make a difference. If you have a vote please use it,” said Standard Life chairman, Sir Brian Stewart.
“We believe that demutualization and flotation will give eligible members their share in the value of the business, reduce with profits investors’ exposure to business risks and allow the company to access external equity capital. The board of Standard Life continues to believe that demutualization and flotation are in the best interests of members, policyholders and our business,” he added.