The Boards of Standard Life and Aberdeen Asset Management have reached agreement on the terms of a recommended all-share merger of Standard Life and Aberdeen.
The combined group will in due course be branded to incorporate the names of both Standard Life and Aberdeen. It will be headquartered in Scotland.
Under the terms of the merger, holders of Aberdeen shares will be entitled to receive 0.757 new shares in exchange for each Aberdeen share.
Based on this exchange ratio and the closing price of 378.5 pence per Standard Life share on 3 March, the merger values each Aberdeen Share at 286.5 pence and Aberdeen’s existing issued ordinary share capital at approximately £3.8 billion.
Following completion of the merger, Aberdeen shareholders would own approximately 33.3% and Standard Life shareholders would own approximately 66.7% of the combined group on a diluted basis.
Following completion of the merger, Sir Gerry Grimstone, chairman of Standard Life, will become chairman of the board of the combined group, with Simon Troughton, chairman of Aberdeen, becoming deputy chairman.
Keith Skeoch, CEO of Standard Life, and Martin Gilbert, CEO of Aberdeen, will become co-CEOs of the combined group.