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FLG Friends Life

429.40
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Friends Life LSE:FLG London Ordinary Share GG00B62W2327 ORD NPV
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 429.40 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 429.40 GBX

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Posted at 10/4/2015 12:10 by lord gnome
On Monday morning the FLG shares will have disappeared from your account and you will then have 740 new shares in AV. for every 1,000 shares you held in FLG. You will be free to trade them as you wish.
Posted at 08/4/2015 10:19 by a0148009
Friends Life notes today's share price movement

Friends Life notes today's share price movement and reminds investors that, as disclosed in the Friends Life Scheme Document published on 19 January 2015, all Friends Life ordinary shares on the register as at 6 p.m. on 9 April 2015, being the Scheme Record Time and Friends Life Dividend Record Date, will be entitled to receive the second interim dividend of 24.1 pence per share. Friends Life shares should not trade ex-dividend ahead of 6 p.m. on 9 April.

It is intended that dealings in Friends Life ordinary shares will be suspended from 7.30 a.m. on 10 April 2015, in anticipation of the scheme of arrangement to implement the acquisition of Friends Life by Aviva plc becoming effective.

Defined terms used but not defined in this announcement have the meanings set out in the scheme document in relation to the Scheme dated 19 January 2015.

AO
Posted at 20/1/2015 18:09 by jeffcranbounre
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Petrofac #PFC
NAHL #NAHL
Rio Tinto #RIO
IG Group #IGG
Unilever #ULVR
Aviva #AV.
Friends Life #FLG
William Hill #WMH
Stock Spirits Group #STCK
Centaur Media #CAU
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Coca-Cola HBC #CCH
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Posted at 02/12/2014 08:36 by lord gnome
It all depends IrnBru. The total value on offer here is approx 370p for the share swap, plus the 24p dividend making 394 in total. This will fluctuate with the AV share price, but I doubt it will vary much. If the market decides to value FLG at the full offer price, or anything approaching it, I may well take the money and run. The efficient market theorists would expect the FLG share price to rise fairly close to the offer price, so another 15p would do it for me.
Posted at 02/12/2014 07:51 by skinny
RECOMMENDED ALL-SHARE ACQUISITION OF
FRIENDS LIFE GROUP LIMITED BY AVIVA PLC
Summary
· The Boards of Aviva and Friends Life are pleased to announce that they have reached agreement on the terms of a recommended all-share acquisition of Friends Life by Aviva.
· Under the terms of the Proposed Acquisition, holders of Friends Life Shares will receive 0.74 New Aviva Shares for each Friends Life Share they hold.
· Based on the Exchange Ratio and the Closing Price of Aviva and Friends Life shares as at 20 November 2014 (being the last business day prior to talks between Aviva and Friends Life being made public), the Proposed Acquisition, excluding the payment to RCAP in relation to the Value Share and Friends Life's proposed second interim dividend payment in respect of the 2014 financial year (each as described below), values each Friends Life Share at 394p and Friends Life's existing issued ordinary share capital at approximately £5.6 billion, representing a premium of:
- 15 per cent. to the Closing Price of 343p per Friends Life Share on 20 November 2014; and
- 27 per cent. to the average Closing Price of 310p per Friends Life Share for the three-month period ended 20 November 2014.
· Based on the Exchange Ratio and the Closing Price of Aviva as at 1 December 2014, the Proposed Acquisition values each Friends Life Share at 370p, which represents a premium of 8 per cent. to the closing price of 343p per Friends Life Share on 20 November 2014.
· In addition, assuming the Proposed Acquisition completes, Friends Life Shareholders who are on the Friends Life shareholder register at the Friends Life Record Date will also be entitled to receive, in place of Friends Life's 2014 final dividend, Friends Life's proposed second interim dividend of 24.1p per share, in respect of the 2014 financial year, resulting in a 2014 full year dividend of 31.15p per share. In the event that the Proposed Acquisition does not complete, Friends Life expects that its 2014 final dividend and therefore its 2014 full year dividend would be in line with Friends Life's 2013 final dividend and 2013 full year dividend, respectively. Friends Life Shareholders will have no entitlement to Aviva's proposed 2014 final dividend.
· The Proposed Acquisition would result in Friends Life Shareholders owning approximately 26 per cent. of the issued ordinary share capital of the Enlarged Aviva Group.
· The Proposed Acquisition accelerates Aviva's investment thesis of "cash flow plus growth" with a financial and strategic rationale that the board of Aviva believes creates a compelling opportunity for the Enlarged Aviva Group to create value for both sets of shareholders:
Financial
- Expected to generate approximately £0.6 billion incremental Holdco Excess Cash Flow per annum[1];
- Gives rise to a combined central liquidity position of £2.4 billion[2];
- Reduces "day 1" external debt leverage and S&P Leverage to a level consistent with an S&P AA rating, beyond Aviva's medium term objectives, with no requirement to further deleverage the Enlarged Aviva Group;
- Expected to generate approximately £225 million of run-rate annual cost synergies by the end of 2017, which Aviva has valued at approximately £1.8 billion[3]. Aviva believes these synergies will deliver substantial value and increase cash flow generation and expects significant additional value through capital, financial and revenue synergies over time; and
- Accelerates Aviva's expected dividend growth, with the intention, in the medium term, to move dividend cover to approximately 2x operating EPS on an IFRS basis.
Strategic
- Secures position as the leading insurance and savings business in the Enlarged Aviva Group's home market, with 16 million customers in the UK (prior to the deduction of overlapping customers);
- Increases scale in attractive segments of the UK Life market including leadership position in Corporate Pensions, Protection and At-Retirement;
- Opportunity for Aviva Investors to add up to approximately £70 billion[4] of Friends Life's UK assets under administration, increasing its AuM by up to 29 per cent., to up to approximately £309 billion[5];
- Brings 5 million current Friends Life customers to Aviva, who stand to benefit from being part of a stronger and more diversified group with a wider product range, and enables Aviva to accelerate its Digital First and True Customer Composite strategies;
- Adds significant scale to Aviva's existing UK Life back book, as well as a management team with the expertise to unlock further value from UK Life insurance back books; and
- Enables investment in the Enlarged Aviva Group's growth businesses.
· The Aviva Directors propose to pay a 2014 final dividend of 12.25p per share, representing a 30 per cent. increase on the 2013 final dividend per share, and resulting in a 2014 full year dividend of 18.1p per share. The Aviva Directors believe the Proposed Acquisition would be broadly neutral to Aviva's operating EPS once full run-rate synergies are achieved, expected by the end of 2017.
· The Aviva Directors believe the Proposed Acquisition brings together two successful management teams, combining Aviva's particular expertise in cost reduction and turnaround with Friends Life's expertise in business integration and back book management.
· Following the Proposed Acquisition, it is anticipated that, Andy Briggs, the current Group Chief Executive of Friends Life, will become Chief Executive Officer of Aviva UK Life and will join the board of Aviva as an Executive Director. Shortly after the Scheme becomes Effective, it is expected that Sir Malcolm Williamson, the current Chairman of Friends Life, will join the board of Aviva as Senior Independent Director and it is anticipated that a further Non-Executive Director of Friends Life will join the board of Aviva.
· The Exchange Ratio and implied premium have been agreed between Aviva and Friends Life having taken into account the impact of the Value Share and the consideration that will be due from Friends Life to RCAP under the terms of the Limited Partnership Agreement.
· At completion of the Proposed Acquisition, Friends Life is required to settle the Value Share in cash. The cash consideration payable to RCAP is expected by Friends Life to be approximately £220 million. However, under the terms of the Limited Partnership Agreement, RCAP can elect to receive the consideration in Friends Life Shares. If RCAP elects for shares, any Friends Life Shares would be acquired by Aviva immediately following completion of the Proposed Acquisition at the Exchange Ratio in connection with the proposed implementation of the Scheme.

more..
Posted at 24/11/2014 12:34 by mike740
Aviva paying 'good price' for Friends Life, says Canaccord Genuity

Mon 24 November 2014 09:22 | A A A
No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

Canaccord Genuity has lifted its target price for insurance firm Friends Life from 340p to 400p and repeated its 'buy' call, saying that the £5.6bn takeover offer from rival Aviva is a "good price" for shareholders.

The companies announced that they had agreed on terms for a possible all-share combination. Friends Life shareholders would get 0.74 Aviva shares for each Friends Life share they own, valuing Friends Life at 398.9p per share.

This is equal to a 15% premium to its closing price on Friday and a 28% premium to the three-month average, and close to its embedded value in the first half, Canaccord said.

Due diligence is now under way and Aviva has until 19 December to make a formal offer.

"We think this is a good price for Friends Life shareholders, as they should receive around embedded value for the business, albeit in shares, and not cash," said Canaccord analysts Ming Zhu and Ben Cohen.

While they have lifted their target price to equal the possible offer, the analysts said they see potential further upside from this level when they have more details about synergies from the deal.

"To a large extent, Friends Life's fair value will now be determined by Aviva's share price, while Aviva's share price will be determined by the enthusiasm by its shareholders for the industrial logic of the deal.

"Assuming an offer is made by 19 December, the details of planned synergies and cash-flow will be key to Aviva's share price performance."

Friends Life was trading 5.6% higher at 367.1p by 09:52 on Monday.
Posted at 23/11/2014 18:38 by cwa1
Remember also that this is an all share offer, so the price is likely to fluctuate within the parameters of the Aviva share price. The suggestion is that Aviva shares are likely to come under modest downward pressure on Monday at least until more details of the benefits and downsides of the deal become more apparent. My guess, FWIW, is round about 5-10% % less(to allow for the possibility of the offer tripping up somewhere) than the Monday morning equivalent of the offer value from Aviva relative to their opening share price and it will fluctuate around from there.
Posted at 23/11/2014 18:32 by contrarian2investor
All the best for next week everyone. Upate from the FT.

Aviva poised to make new Friends

When Mark Wilson was hired to run Aviva after a shareholder revolt over executive pay and poor performance forced out his predecessor, the insurance group was looking vulnerable to a low-ball takeover bid.
Less than two years later, it is Aviva that is the aggressor. Mr Wilson is planning to lead a long-awaited consolidation of the UK life assurance and pensions industry with an audacious £5.6bn takeover of rival Friends Life.


The deal, the largest in the sector in almost 15 years, would create a combined business with a market value of more than £21bn (at Friday’s closing prices), 16m UK customers and £340bn of assets under management.
Investors are only beginning to digest Aviva’s plans for the all-share acquisition, which the two companies were forced to confirm late on Friday after the news leaked.
But some in the City are already questioning the logic – even though the boards of the two companies have agreed on the key terms.
“The problem is, it’s UK life,” says Barrie Cornes, an analyst at Panmure Gordon. “The market is very mature.” He adds that the price Aviva is prepared to pay is “more than full”.
At 398.9p a share, it represents a 28 per cent premium to Friends’ average price over the past three months and is about the same as the takeover target’s embedded value, a way of valuing life assurance companies’ future cash flows.
Although the London Stock Exchange had closed when the deal became public, a proxy for Aviva’s share price – its New York-listed American depositary receipts – fell as much as 2.7 per cent during Friday evening.
Life offices are notoriously awkward to integrate given their often-incompatible IT systems and variety of legacy policies.
Indeed, the woes at Aviva that prompted the insurer’s former chief executive Andrew Moss to stand aside had their origin in past tie-ups, such as those between the old General Accident, Commercial Union and Norwich Union businesses.
Still, Mr Wilson has built up goodwill among Aviva’s leading institutional shareholders for his efforts in curbing administrative costs.
“We’re prepared to give him the benefit of the doubt,” says a fund manager at one of Aviva’s largest 20 shareholders. He says the deal makes “a great deal of sense”.
An overhaul of the UK pensions industry caused by government reforms give the combination some obvious merits.
Changes being introduced by George Osborne have led to a sharp drop in sales of annuities, among life insurers’ most lucrative products.
The moves give consumers more flexibility in how they access their savings. Yet Friends Life faces a particular difficulty coping with the new environment as it lacks its own chunky in-house asset management operation.
“For Friends, this deal is a recognition of how they’ve been weakened by changes to the annuity market,” the fund manager says.
The deal would allow Aviva Investors, led by Euan Munro, to take on Friends’ funds. It would also give Aviva bigger scale in handling corporate pension mandates, a corner of the industry that is growing given separate reforms that require employers to enrol workers automatically.
However, insiders at Aviva say that the main rationale is financial, not strategic.
They say the tie-up with Friends would improve cash generation and reduce leverage, which Mr Wilson has made a priority.
Friends Life, formerly known as Resolution, is expected to generate £370m of cash this year, largely from a multibillion pound pool of closed life assurance funds acquired under founder Clive Cowdery.
While the Friends deal itself might provide only limited growth opportunities outside the corporate pensions business, backers believe it will give Aviva more financial firepower to pursue growth elsewhere.

It should also give Aviva greater scope to boost the dividend, which Mr Wilson slashed by 44 per cent just weeks after he took the job.
However, the success of the deal will partly depend on the efficiency savings Aviva can generate. It has yet to quantify them, other than that they will be “substantial”.
Job cuts are likely at the combined group, especially at Friends’ City of London head office. The takeover target employs 3,500 people.
Aviva has yet to complete its due diligence on Friends, but unless it uncovers an unwelcome surprise it is likely to make a formal offer in about two weeks.
The prospect of investor reservations about the deal turning into disquiet is minimised by a significant degree of cross-holdings among institutions in the two companies.
Aviva’s largest shareholder, BlackRock, is the third-biggest investor in Friends Life. Aviva’s fourth and fifth largest, Legal & General and Franklin Templeton, are also among the takeover target’s 20 biggest equity holders.
If shareholders support Mr Wilson’s transaction formally at a special meeting early next year, then the contrast with his predecessor will be complete.
Posted at 22/11/2014 18:52 by a0148009
As of Friday's close I reckon the Possible Offer is worth 398.9 plus implied final cash divided for financial year 2014 of 14.09p per share - Total 412.99 see extract from indicated Offer below.

Also according to the Telegraph the Value shares held by Resolution shareholders, former directors, in addition to the Possible Offer to FLG are worth £200m which can be taken in shares or cash by those individuals.
See extract from 2013 Annual Report



Extract from Possible Offer

"In addition, the Possible Offer will be structured so that Friends Life shareholders would receive (whether by way of dividend or pursuant to the Possible Offer) an amount in cash equal to any Friends Life final dividend payment for the 2014 financial year (but would not be entitled to any additional amount in respect of any final Aviva dividend payment for the 2014 financial year)."

Extract from 2013 Annual Report

"How the Value Share works
1
As and when capital is required by Resolution Holdco No. 1 LP,
eg returns in order to make acquisitions, the Company as General
Partner contributes 99.99% of the required capital (usually by
raising funds from shareholders) and RCAP as Limited Partner
would contribute the other 0.01% of the required capital (which it
would obtain from the owners of RCAP).
As and when returns are generated at Resolution Holdco No.1 LP
these returns may be distributed to its partners. Returns distributed
from Resolution Holdco No. 1 LP are distributed according to the
following rules:
Ź
Firstly returns are distributed to the Company until it has received
back all of the gross capital it invested plus an agreed annual
return (currently 4% p.a.).
Ź
Secondly returns are distributed to RCAP until it has received
back all of the gross capital it originally invested.
Ź
All returns distributed from Resolution Holdco No. 1 LP after the
satisfaction of these two thresholds will be distributed 90% to
the Company and 10% to RCAP.
RCAP’s 10% economic interest in such distributions is what we
describe as the “Value Share”.
The gross capital contributed to Resolution Holdco No. 1 LP by the
Company to date is £4,056 million. As at 31 December 2013, the
Company had received aggregate distributions of returns from the
partnership of £1,066 million and the aggregate “agreed return”
to 31 December 2013 was £553 million. Therefore the cumulative
returns which still needed to be distributed to the Company from
Resolution Holdco No. 1 LP before RCAP would become entitled to
share in future distributions was £
3,543 million at 31 December 2013.
If the returns distributed from Resolution Holdco No. 1 LP remain at
the current level of £350 million per annum; and assuming that no
additional capital is deployed in Resolution Holdco No. 1 LP; that the
agreed return figure does not change from 4.0% p.a., and that there
are no one-off special returns distributions from Resolution Holdco
No. 1 LP; RCAP’s entitlement to 10% of future returns distributed
from Resolution Holdco No. 1 LP would commence in 2026.
It should be noted that the use of any returns distributed to the
Company from Resolution Holdco No. 1 LP has no impact on
the date on which RCAP becomes entitled to share in future
distributions of returns from Resolution Holdco No. 1 LP. That is,
it is irrelevant for this purpose whether the returns received by
the Company are retained in the Company itself, used to pay an
ordinary or special dividend to the Company shareholders, or are
used to fund a share buyback.
If the Company were to undertake further acquisitions and
additional capital needed to be injected into Resolution Holdco No.
1 LP in order to fund these, RCAP would be required to contribute
0.01% of any such capital required by the partnership. Such a
capital raising would increase the amount of deployed equity capital
at work in Resolution Holdco No. 1 LP from which RCAP would
eventually be entitled to receive 10% of distributed profits.
Such further acquisitions made in Resolution Holdco No. 1 LP might,
or might not, extend the time period until RCAP started to receive
such distributions. The impact on timing would depend on whether
the FLG business was proportionately more or less cash generative
relative to total capital deployed after the acquisition compared to
the position before the acquisition.
1. The information on the Value Share set out in this section is a summary of the arrangements in place as between the Company
and RCAP. For further details please refer to
the Prospectus issued in respect of the Company’s proposed acquisition of Friends Provident Group.
Resolution Operations LLP
(“ROL”)
ROL is a UK registered limited liability partnership and is
a member of The Resolution Group the original sponsor
and founder of the Company, which is not controlled by the
Company or linked to the Company in any way other than
through the named individuals below and the Value Share as
explained above.
The original partners of ROL included Board members Clive
Cowdery and John Tiner, as well as Jim Newman, a member of
the Group Executive Committee. Clive’s and John’s interests in
the Value Share are explained on page 115.
In the event of a change of control of the Company, the LPA
requires the Company to purchase RCAP’s interests in Resolution
Holdco No. 1 LP for cash unless RCAP agrees to accept the
Company ordinary shares instead. The purchase price for RCAP’s
interest would be 10% of the added value deemed to have been
generated as at the date of the change of control based on the
total consideration paid for the Company less any net assets of the
Company itself (ie net assets held outside of the partnership).
If a change of control of the Company had taken place at
31 December 2013, at the Company share price of £3.54 on that
date, the added value would have been £1,333 million, and the
Company would have been required to acquire RCAP’s interest in
Resolution Holdco No. 1 LP for approximately £133 million in cash.
Operation of the Value Share
Returned capital
Deployed equity
capital
+ 4%
Value share
10%
J
RCAP
Less
74
Resolution Limited
Annual report and accounts 2013

Extract from the Possible Offer

"Based on Aviva's closing share price on 21 November 2014, the Possible Offer represents an indicative value of approximately 398.9 pence per Friends Life share (not including the value of the Friends Life final dividend for 2014 and the Value Share) representing an indicative premium of 15 per cent. to Friends Life's closing share price on 21 November 2014 and an indicative premium of 28 per cent. to Friends Life's three month average share price of 310.7 pence. Under the terms of the Possible Offer, Friends Life shareholders would own approximately 26 per cent. of the enlarged group."

I think this is right but welcome any comments.

edit

Question will they continue with the share buyback?

AO
Posted at 13/8/2014 14:54 by a0148009
Forgot to mention the £317 million approved buy back scheme arranged with Barclays and RBC as brokers when the sale of the Lombard Business is completed in the second half of this year which should also be supportive to the share price

Friends Life Group Limited

06 August 2014

Friends Life Group Limited

("Friends Life" or the "Company")

Friends Life announces regulatory approval of increased share buy back programme

Friends Life is delighted to announce that regulatory approval has been received to increase the share buy back programme (the "Buy Back Programme") announced on 11 July 2014 from GBP261 million to GBP317 million. The Buy Back Programme will be funded from the GBP261 million upfront cash consideration from the sale of Lombard International Assurance S.A. and Insurance Development Holdings AG (together, the "Lombard Business") together with GBP56 million from existing surplus cash resources in the Company. The GBP56 million increase in the Buy Back Programme is equivalent to the amount of the vendor loan note issued as part of the Lombard Business sale. This demonstrates the strength of the Company's balance sheet and the Board's confidence in the Company's financial strength.

Friends Life has today entered into an irrevocable and non-discretionary arrangement with its corporate brokers, Barclays Bank PLC, acting through its investment bank, and RBC Europe Limited, (together, the "Joint Brokers"), to repurchase on its behalf GBP317 million (the "Programme Limit") worth of ordinary shares of nil par value in the capital of the Company, representing approximately 6.7% of the current issued share capital of the Company based on the 10 day rolling average share price of 332.1p on 4 August 2014.

The Buy Back Programme will commence on completion of the sale of the Lombard Business, which is expected to occur in the second half of 2014, subject to regulatory approval. The Buy Back Programme will end on the date the Programme Limit has been utilised. Ordinary shares repurchased pursuant to the Buy Back Programme will be cancelled by the Company.

Any purchase of ordinary shares in the Company carried out under the Buy Back Programme will be executed within certain pre-set parameters in accordance with the Listing Rules and the Company's general authority to make market purchases of ordinary shares. The Company will announce any market repurchase of ordinary shares no later than 7.30 am on the business day following the calendar day on which such repurchases occurred.

The Joint Brokers may undertake transactions in ordinary shares in the Company, (which may include sales and hedging activities, in addition to purchases) in order to manage their market exposure under the Buy Back Programme. The Joint Brokers will make any disclosures they are legally required to make in relation to such transactions.

- Ends

AO
Friends share price data is direct from the London Stock Exchange

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