(Alliance News) - Standard Life Aberdeen PLC on Tuesday said Standard Life Investments Ltd is planning to sell as many as 8.6 million shares in HDFC Asset Management Co Ltd.
Standard Life Investments informed the National Stock Exchange of India Ltd and the Bombay Stock Exchange Ltd of its intention to commence an offer for sale process for up to 4.8 million HDFC shares with the option of selling additional shares up to a cap of 8.6 million should an over-subscription occur.
The offer opens and closes on Wednesday this week and has a floor price of INR3,170.0 per share, about GBP34 per share.
Assuming a full subscription of the first 4.8 million shares at the floor price, Standard Life Investments would receive approximately INR13.29 billion, or GBP142 million, net of taxes and expenses. Should the full over-subscription allotment be used, Standard Life Investments would expect another IRN10.77 billion, or GBP116 million, net of taxes and expenses.
All 8.6 million shares constitute a 4.0% stake in HDFC's equity share capital, which would leave Standard Life Investments with a 26% stake. At the most recent closing price of INR3,442.8, the remaining shareholding would be worth around INR190 billion or GBP2.03 billion.
Standard Life Aberdeen said it plans to return all proceeds from the offer to shareholders though a share buyback programme, provided it obtains the necessary regulatory approvals.
"The company has one of the strongest balance sheets in its industry, a competitive strength which allows it to balance return of surplus capital to shareholders with continuing to invest in a disciplined way in parts of its business that it believes will provide growth for the future," said Standard Life Aberdeen.
Shares in Standard Life Aberdeen were down 0.7% at 307.70 pence in London on Tuesday.
By Anna Farley; annafarley@alliancenews.com
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