Friends Life Group Suspends Share Buyback Programme, Stock Up

(RTTNews) - Friends Life Group Ltd. (FLG.L) said its board has decided to suspend the previously announced buyback programme as of November 21, until agreement on other terms and conditions of any offer and completion of mutual due diligence with Aviva plc (AV.L, AV).

Friends Life shares rose more than 5 percent in London on Monday, while Aviva shares fell about 5 percent.

Friends Life noted that the buyback instructions that were issued to its corporate brokers, Barclays Bank Plc and RBC Europe Ltd, on August 6, 2014, have been terminated.

The buyback programme commenced on October 31 and to date 9,057,000 ordinary shares have been purchased for an aggregate consideration of 29.85 million pounds. Should a combination with Aviva not be forthcoming, Friends Life would look to reinstate the buyback programme at the earliest available opportunity.

It was on last Friday that British life and health insurer Aviva agreed to the terms for possible all-stock acquisition of smaller rival Friends Life Group to create UK's leading insurance, savings and asset management business with 16 million customers.

The two companies confirmed that they have reached an agreement on the key financial terms of a possible all share combination. However, there can be no certainty that Aviva will proceed to make an offer for Friends Life.

Friends Life shares rose 5.24 percent to trade at 365.93 pence on 12.29 million shares.

Meanwhile, Aviva shares fell 5.01 percent to trade at 512 pence, on a volume of 9.22 million shares.