Future Dividend Policy ADN RNS6 Mar 2017 09:38
Subject to approval at the Standard Life Annual General Meeting scheduled for 17 May 2017, Standard Life Shareholders will receive the final dividend of 13.35 pence per Standard Life Share for the six month period ended 31 December 2016 that was announced on 24 February 2017 (the "First Permitted Standard Life Dividend"). Subject to the approval of the Board of Aberdeen at the appropriate time, Aberdeen Shareholders will be entitled to receive an interim dividend of up to 7.5 pence per Aberdeen share for the six month period ended 31 March 2017, in the ordinary course and consistent with its past practice (the "First Permitted Aberdeen Dividend").
If completion of the Merger occurs before the record date for Standard Life's interim dividend for the six month period ending 30 June 2017, shareholders in the Combined Group would be entitled to receive such interim dividend.
In the event that completion of the Merger occurs after the record date for Standard Life's interim dividend for the six month period ending 30 June 2017, Standard Life Shareholders would be entitled to receive such interim dividend (the "Second Permitted Standard Life Dividend"). In this event, Aberdeen would expect to declare and pay a dividend to their shareholders prior to the Scheme Record Time equivalent to the Second Permitted Standard Life Dividend multiplied by the Exchange Ratio, therefore providing Aberdeen Shareholders with the sum they would have received had completion of the Merger taken place prior to the record date for Standard Life's interim dividend (such equalising dividend being the "Second Permitted Aberdeen Dividend" and when taken together with all permitted dividends referenced above, including the First Permitted Aberdeen Dividend and the First Permitted Standard Life Dividend, the "Permitted Dividends"). The maximum dividend payable as the Second Permitted Aberdeen Dividend will be advised to shareholders in due course and no later than the Scheme Document.
If either party announces, declares, makes or pays any dividend or other distribution on or after the date of this announcement and prior to completion of the Merger, other than the Permitted Dividends, or in excess of the Permitted Dividends, there will be no change to the Exchange Ratio. However, Standard Life and Aberdeen reserve the right to respectively pay an equalising dividend to their Shareholders.
Dividend policy post completion
Following the Merger and subject to the approval of the Board of the Combined Group, the Combined Group intends to adopt Standard Life's progressive dividend policy with the base dividend being the Standard Life full year dividend of 19.82 pence for the financial year ended 31 December 2016. The increased diversification of the Combined Group, enhanced financial profile and material earnings accretion is expected to support the generation of attractive and sustainable returns for Shareholders, includi
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