All clients with Friends Provident income protection policies taken out before 4 May 2001 with be el...
All clients with Friends Provident income protection policies taken out before 4 May 2001 with be eligible for shares in the life office, as it gears up to float on the stock exchange.
Around 1.7 million qualifying members will be eligible for a single fixed allocation of 200 shares, but over 60% of these will also be eligible for an additional allocation which will depend on the size of their policy and how long they have had it. The close of the preferential share offer is 3 July and any policyholders that fail to register will not receive their entitlement.
David Newbigging, chairman of Friends Provident, warned IFAs to notify their clients immediately or they will lose out. 'This is an important milestone in the development of the Friends Provident group. The distribution of shares to qualifying members will release value to them without any adverse impact on their policies.'
The preferential offer will be priced at a 5% discount from the institutional offer, which will be between 199.5p and 256.5p per share.
Applicants are also entitled to one bonus share for every 20 ordinary shares they buy in the preferential offer if they retain them for one year from the date of listing.
