View more on these topics

Resolution sets out new Friends offer

Resolution has tabled a new cash and shares offer for Friends Provident that takes into account the proposals set out by Friends Provident last week.

In a trading statement issued today, the Resolution board set out a cash offer for the first 2,500 Friends Provident shares with Resolution shares issued for the remaining stock.

The possible offer would enable Friends Prov shareholders to elect to take Resolution shares instead of all or part of the cash component of the offer, at the applicable exchange ratio per Friends Prov share.

The cash component of the offer is expected to allow the vast majority of Friends Prov’s retail shareholders to exit in cash in full, if they so choose.

Resolution also says it will pay Friends Prov shareholders a 2009 dividend which would give them the same dividend income they would have received in the absence of this transaction.

The two firms are meeting today to “find a way forward that is mutually acceptable”, says the statement.

On Friday, Friends Prov set out proposals for the combination of the groups which would see Friends Prov become the holding company of the new entity, to be named Friends Provident Holdings (UK) Limited.

Under Resolution’s plans the Friends Provident Board would become the board of Resolution’s UK holding company, to be named Friends Provident Holdings.

Friends Prov Holding would be the vehicle used to acquire other insurers with Resolution intends to re-list as an enlarged group by 2012 on completion of the group’s consolidation strategy.

Friends Provident Holdings would be a wholly owned subsidiary of Resolution. The Resolution Board is chaired by Mike Biggs. Resolution says the Friends Provident Holdings Board will be comprised of a majority of independent non-executive directors, including Friends Provident’s existing chairman.

Resolution would invite all of the existing Friends Provident non-executive directors to join this board, supplemented, over time, by additional non-executive directors from the Boards of subsequently acquired companies, as well as the chief executive and chief financial officer of Friends Pov Holdings
plus Clive Cowdery and John Tiner.


Recommended

Alternative medicine

The Investment Management Association is the latest group to shoot down the European Commission’s proposals for regulation of the alternatives’ industry.

Now the Tories should turn to the RDR

The Conservatives’ plans to abolish the FSA and set up a new body whose remit would include regulating advisers deserve serious attention, given current opinion polls.

Dividend slump? Not if you look globally

By George Boyd-Bowman, Manager of the Neptune Global Income Fund Recent research has indicated that global dividend growth will slump by as much as 50 per cent in 2016. As collapsing commodities hit high-profile dividend payers, George Boyd-Bowman explains why the US and Japan are his top picks for income growth in 2016. Click here […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com