Standard Life Aberdeen to sell £260m India stake

Standard Life Aberdeen's HQ in Edinburgh

Edinburgh-based investment giant Standard Life Aberdeen said on Tuesday that Standard Life Investments (SLI) intends to sell up to £260 million of shares in HDFC Asset Management in India.

The Edinburgh firm has been selling down its stake in HDFC over the past year.

Standard Life Aberdeen said it intends to use the proceeds for general corporate purposes.

If all the sale goes through, SLI’s remaining shareholding would be 21.25% of HDFC AMC worth about £1.19 billion.  

“The company notes that on Tuesday 16 June 2020, SLI informed the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited that it intends to commence an offer for sale process in respect of up to 6,000,000 shares in HDFC AMC, with an option to additionally sell up to 6,000,000 shares through the offer in event of oversubscription …” said Standard Life Aberdeen in a stock exchange statement.

“The floor price for the offer is Rs 2,362.00 per share.  

“Assuming full subscription of the base shares at the floor price disclosed, SLI would anticipate receiving approximately Rs 12,536bn (c£130m), net of taxes and expenses, from the sale pursuant to the offer. 

“In the event of oversubscription and were the full amount of additional shares also to be sold, SLI would anticipate receiving an additional Rs 12,536bn (c£130m), net of taxes and expenses. 

“The company intends to use the proceeds for general corporate purposes.

“The collective shares constitute 5.64 % of the paid-up, issued equity share capital of HDFC AMC. 

“Should all of the collective shares be sold through the offer, SLI’s remaining shareholding would be 21.25% of HDFC AMC.  

“Based on today’s closing share price of Rs 2,539.95, the value of this remaining shareholding would be approximately Rs 115bn (c£1.19bn).”

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