Standard Life on track for £2.2bn sale of Canadian business to Manulife

Pensions giant Standard Life’s proposed £2.2 billion sale of its Canadian business to insurer and wealth manager Manulife remains on track.

The Edinburgh-based financial services firm yesterday said the proposed divestment had approval from the Canadian Finance Minister and relevant securities authorities in the country, and is expected to complete shortly.

The sale will trigger a £1.75bn windfall for Standard Life shareholders the equivalent of a dividend of 73p per share prior to April 6.

A share consolidation programme will also be carried out at the same time, assuming investors give their permission for the move.

In September, chief executive David Nish said the sale of its Canadian operation had the twin benefit of reducing the group’s capital intensity and allowing it to accelerate its growth strategy.

While the move will bring an end to the firm’s direct involvement in the Canadian market, a global collaboration agreement negotiated as part of the deal will see Manulife distribute Standard Life Investments products in the country, the US and Asia.