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(Sharecast News) - Shares in Standard Life tanked on Thursday after investment company Aberdeen offloaded half of its stake in the savings and retirement specialist for £436m through a discounted share placing.
Standard Life was the biggest faller on the FTSE 100 in morning trading, dropping 5.2% to 826p after Aberdeen confirmed it had sold 52m shares, representing around 5.2% of the company's issued share capital, at 839p apiece.
The placing price represented a 3.7% discount to Standard Life's closing price of 871.5p on Wednesday.
The disposal, announced after Wednesday's market close and completed through an accelerated bookbuilding process, reduces Aberdeen's holding in Standard Life from 10.3% to approximately 5.2%.
Aberdeen said it would use the proceeds in line with its capital allocation policy, including maintaining a strong balance sheet, selective investment in the business, reducing debt over time, and delivering sustainable shareholder returns.
Standard Life was not involved in the placing and will receive none of the proceeds.
The move follows a 17% gain in Standard Life's share price since the start of the year, as of Wednesday's close.
Aberdeen's shares gained 0.6% on the news to 235.8p.
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