Edinburgh investment giant Aberdeen Group late on Wednesday announced the proposed sale of 52 million ordinary shares of its shareholding in Standard Life plc, representing 5.2% of Standard Life’s issued share capital, to institutional investors.

At Standard Life’s Wednesday closing price of around £8.71, the stake being sold would be worth about £453 million.

“Aberdeen currently owns 104.1 million ordinary shares in Standard Life, representing approximately 10.3% of Standard Life’s issued share capital,” said Aberdeen.

“Following completion of the placing, Aberdeen will retain 52.1 million ordinary shares, representing approximately 5.2% of Standard Life’s issued share capital.

“Aberdeen and Standard Life have maintained a longstanding strategic relationship since 2018, which was simplified and extended in February 2021. Following successful completion of the placing, Aberdeen will continue to be a key partner to Standard Life under existing asset management arrangements and remain one of its largest shareholders.

“Aberdeen intends to deploy the proceeds from the placing in accordance with its disciplined capital allocation policy, which is focused on maintaining a strong balance sheet, investing selectively in the business to support sustainable profitable growth, reducing and optimising debt over time, and delivering sustainable returns to shareholders.

“Consistent with these priorities, Aberdeen expects to redeem its £210 million of Additional Tier 1 debt at its first call date in December 2026, as announced with its half year 2026 results.

“Aberdeen recognises the importance of its dividend to shareholders and confirms that its dividend policy remains unchanged.

“The placing has no impact on Aberdeen’s existing 2026 group targets of Adjusted Operating Profit of at least £300 million and Net Capital Generation of approximately £300 million, and Aberdeen remains confident in their delivery.”

Aberdeen CEO Jason Windsor said: “The transaction announced today is further progress to simplify our group, as we seek to deliver on our ambition to become the UK’s leading Wealth and Investments business.

“We see attractive opportunities to invest in growth and will continue to allocate capital where we believe it can generate the best returns for shareholders, while maintaining a strong balance sheet.

“Aberdeen and Standard Life have worked in close partnership for many years, and we look forward to continuing to deliver as a key asset management partner to Standard Life.”

Aberdeen added: “The price per Placing Share will be determined through an accelerated book-building process to institutional investors, which will be launched immediately following release of this announcement.

“The book-building may be closed at any time, and the results of the Placing will be announced the following day before market opens on the London Stock Exchange. The Placing is subject to demand, price and market conditions.

“Evercore Partners International LLP is acting as lead financial adviser to Aberdeen in connection with the Placing. Goldman Sachs International and J.P. Morgan Securities plc, which conducts its UK investment banking activities as J.P. Morgan Cazenove, have been appointed by the Company as Joint Global Coordinators and Bookrunners for the Placing.

“The Company has agreed to a 90-day lock-up in respect of its residual proprietary shareholding in Standard Life following completion of the Placing (subject to customary carve-outs and waiver by Goldman Sachs International and J.P. Morgan Cazenove).

“Standard Life is not a party to the Placing and will not receive any proceeds or shares in connection with the Placing.”