Following the takeover of Scottish Provident by Abbey National, the group is to close its with-profi...
Following the takeover of Scottish Provident by Abbey National, the group is to close its with-profits fund, which contains the 38% shareholding in Aberdeen Asset Management.
The £2bn takeover of Scottish Provident by Abbey National will see the transfer of existing unitised with-profits business and non-profit unit-linked business into a non-profits fund in a company named Scottish Provident Limited. The conventional with-profits business will be transferred into a ring-fenced sub-fund in the newly-formed Scottish Provident Life and no new business written in the fund.
The equity share in Aberdeen will remain under the ownership of members of the fund. The management of the Scottish Provident with-profits fund, currently run by Aberdeen, will switch to Abbey National Fund Managers in 2002, when the equity stake will be reassessed.
Abbey National spokesman Rupert Young said: "There is a misconception that now Abbey National owns 38% of Aberdeen. The stake is owned by the Scottish Provident Life Fund and it will be up to the investment managers as to what they do with it."
The takeover by Abbey National subject to a 75% majority in a vote of its members and go-ahead from the Scottish Court and regulators. Members should receive £1.58bn in windfall payments in compensation for loss of membership rights. The average windfall is likely to be around £6,000 with around £4,500 paid out on completion in autumn 2001 and the rest accrued over time as enhanced policy benefits to the current generation of policyholders.
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