TIDMSL.
RNS Number : 5676G
Standard Life plc
08 August 2016
8 August 2016
HDFC Life and Max Group entities agree terms to combine life
insurance businesses
Standard Life plc ("Standard Life") notes the announcement by
its Indian associate, HDFC Standard Life Insurance Company Limited
("HDFC Life") today that it has agreed terms with Max Life
Insurance Company Limited ("Max Life"), Max Financial Services
Limited ("Max FS") and Max India Limited ("Max India") for the
combination of the life insurance businesses of HDFC Life and Max
Life. The transaction will be effected through a composite scheme
of arrangement, the final form of which remains subject to approval
by parties to the transaction and, once finalised, is subject to
approval by the shareholders of HDFC Life, Max Life, Max FS and Max
India as well as regulatory and high court approvals.
Following completion of the transaction, the shares of HDFC Life
will list on The Bombay Stock Exchange and the National Stock
Exchange of India, subject to the approval of these stock exchanges
and the Securities and Exchange Board of India.
Based on current shareholdings, following completion of the
transaction, the shareholders of HDFC Life would hold 69% of the
enlarged HDFC Life. Standard Life, through its wholly owned
subsidiary, would remain the second largest shareholder in HDFC
Life with a shareholding of 24.1%.
Keith Skeoch, CEO of Standard Life plc, said: "I am delighted
with today's announcement of the proposed transaction. Max Life's
bancassurance relationships will complement HDFC Life's already
strong distribution. If approved, we expect it to cement HDFC
Life's position as the leading private sector Indian life insurance
business. As a result of this transaction, we will have strategic
stakes in leading Indian life insurance and asset management
companies."
For further information please contact:
Institutional Equity +44 (0) 131 245 8028*
Investors +44 (0) 7515 298 608
Jakub Rosochowski +44 (0) 131 245 6466*
Neil Longair +44 (0) 7711 357 595
+44 (0) 131 245 6165*
Media +44 (0) 771 248 6463
Barry Cameron +44 (0) 131 245 1365*
Steve Hartley +44 (0) 770 293 4651
Group Secretariat
Paul McKenna +44 (0) 131 245 1168*
* Calls may be monitored and/or recorded to protect both you and
us and help with our training. Call charges will vary.
Notes:
The transaction will be effected by means of a composite scheme
of arrangement. Approximate post-completion shareholdings in HDFC
Life, based on current share holdings in the relevant companies,
would be:
Shareholder Approximate post-transaction
shareholding
----------------------------------------- -----------------------------
Standard Life 24.1%
Housing Development Finance Corporation
Limited 42.5%
Other shareholders in HDFC Life 2.4%
----------------------------------------- -----------------------------
Total shareholders in HDFC Life 69.0%
Shareholders in Max FS 21.7%
Shareholders in Max Life excluding
Max FS 9.3%
----------------------------------------- -----------------------------
Total existing shareholders in
Max Life and Max FS 31.0%
----------------------------------------- -----------------------------
Total 100.0%
========================================= =============================
Treatment of Standard Life's shareholding in HDFC Life
Completion of the proposed transaction would result in Standard
Life's current shareholding of 35% in HDFC Life becoming 24.1% of
the enlarged HDFC Life entity at completion. As a result, if the
transaction is completed, Standard Life expects to recognise a
dilution gain in its consolidated income statement, with a
corresponding increase in the carrying value of its investment in
HDFC Life. The amount of the dilution gain will be dependent on a
number of factors including the share price of Max FS at
completion, foreign exchange rates and the profit or loss reported
by HDFC Life until completion of the transaction. Standard Life
would remain the second largest shareholder in the enlarged HDFC
Life. The dilution gain is not expected to give rise to a tax
charge. Profits or losses arising on the disposal of associates are
not included in operating profit.
About Standard Life
-- Standard Life is an investment company with over 190 years'
experience of helping people invest and manage their money.
-- Standard Life employs around 6,500 people internationally -
through businesses in the UK, Europe, North America, Asia and
Australia.
-- Around 4.5 million customers and clients across 46 countries
trust Standard Life with their financial future. Standard Life is
responsible for the administration of GBP314 billion of their
assets, with Standard Life Investments, actively managing GBP259
billion of these assets globally, as at 31 March 2016. Standard
Life also supports over 25 million customers through Indian and
Chinese associate and joint venture businesses(#) .
-- Standard Life plc is listed on the London Stock Exchange with around 1.2 million individual shareholders.
-- Standard Life is proud to be listed as a leader for corporate
sustainability in its industry in the Dow Jones Sustainability
Indices (DJSI World and DJSI Europe).
-- You can follow Standard Life on www.twitter.com/StandardLifeplc
(#) All figures as at 31 March 2016
About HDFC Life
-- HDFC Life was established in 2000 and was the first private
life insurance company to be granted a licence following the
liberalisation of the Indian insurance market.
-- HDFC Life is one of the leading life insurance companies in
India offering a range of individual and group insurance solutions
that meet various customer needs such as Protection, Pension,
Savings & Investment and Health, along with Children's &
Women's Plan.
Forward-looking statements
This announcement may contain 'forward-looking statements' about
certain of the Standard Life Group's current plans, goals and
expectations relating to future financial conditions, performance,
results, strategy and objectives. Statements containing the words:
'believes', 'intends', 'targets', 'estimates', 'expects', 'plans',
'seeks' and 'anticipates' and any other words of similar meaning
are forward-looking. By their nature, all forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances which may be beyond the Group's
control. As a result, the Group's actual financial condition,
performance and results may differ materially from the plans, goals
and expectations set out in the forward-looking statements, and
persons reading this announcement should not place undue reliance
on forward-looking statements. The Standard Life Group undertakes
no obligation to update any of the forward-looking statements in
this announcement or any other forward-looking statements it may
make.
Inside Information
Prior to publication, this announcement contained information
treated as inside information for the purposes of the Market Abuse
Regulation which came into effect on 3 July 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEADPPEEPKEFF
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August 08, 2016 09:11 ET (13:11 GMT)
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