Standard Life's 2.4 million members have been told recently that they can expect an average windfall of £1,700 in free shares when the group floats on the stock market later this year.
The £4 billion payout is the largest demutualisation since Scottish Widows was taken over by Lloyds TSB in 2000, when 1.6 million members shared £5.8 billion.
In the groups' demutualisation proposals that were released recently, around half of their policyholders were told that they were to receive shares worth between £500 and £1,000, and the rest are set to receive even bigger payouts based on the size and duration of their policies. Members have until May 28th to return their voting forms. If at least 75% vote in favour, floatation will take place in July.
Our view
Best of luck to those who receive their 'windfall', it would however have been much higher a few years ago. De-multialising will give Standard much needed flexibility in terms of raising capital and being able to take the Company to a new level.