Sun Life Financial shares begin first day of trading on global marketsSun Life Financial Services of Canada Inc. begins its first day of trading today simultaneously at 9:30 a.m. EST on the Toronto, New York and London Stock Exchanges, offering 143,602,914 shares at Cdn$12.50/US$8.50 per share. The total offering is Cdn$1.8 billion/US$1.2 billion with market capitalization of Cdn$5.0 billion/US$3.4 billion.
On the Toronto Stock Exchange (TSE) and New York Stock Exchange (NYSE) the ticker symbol is "SLC" and on the London Stock Exchange (LSE) the ticker symbol is "SFC". The shares will also begin trading on March 24, 2000 on the Philippine Stock Exchange (PSE) when it opens at 9:00 am (Manila time) under the ticker symbol "SLC".
"It is a pleasure to complete our demutualization, which we firmly believe is in the best interest of our policyholders and the Company," said Donald A. Stewart, Chairman and Chief Executive Officer.
Of the total 143.6 million common shares offered, 46,076,136 shares are being offered by Sun Life Financial Services of Canada Inc. to fund payments to policyholders in respect of demutualization and 97,526,778 shares are being sold by selling policyholders resident in the United States, the Philippines and the United Kingdom and elsewhere.
The underwriters have a 30-day option to purchase up to 21,540,437 additional common shares at the offering price to cover over-allotments, if any, and for market stabilization purposes.
The proceeds from the offering (excluding the over-allotment option available to the underwriters) will be used to fund the payments to eligible policyholders required to receive cash and policy credits, and to fund the payments to eligible policyholders who chose to receive their demutualization benefits as cash. Eligible policyholders who chose cash can expect to have payment mailed within two weeks following the closing of the IPO, which is expected to occur on March 29, 2000.
The closing of the IPO will mark the completion of the demutualization process of Sun Life of Canada. The Canadian Secretary of State (International Financial Institutions) Jim Peterson approved Sun Life of Canada's demutualization plan on March 22, 2000.
The global bookrunner for the offering is Morgan Stanley & Co. Incorporated and the global co-ordinators for the offering are RBC Dominion Securities Inc. and Morgan Stanley & Co. Incorporated. Copies of the prospectus may be obtained by contacting the underwriters.
Sun Life of Canada commenced business in 1871 and has grown to become a diversified global financial services organization with total assets under management of Cdn$301 billion as at December 31, 1999.
Sun Life of Canada and its subsidiary companies, provide a wide range of savings, retirement, pension and life and health insurance products and services to individuals and corporate customers in select world markets. The Company operates primarily in Canada, the United States, the United Kingdom and also has operations in Asia and South America.
THIS ANNOUNCEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE COMMON SHARES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO THE REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION. A WRITTEN PROSPECTUS MAY BE OBTAINED FROM MORGAN STANLEY & CO. INCORPORATED, 1585 BROADWAY, NEW YORK, NEW YORK 10036 OR RBC DOMINION SECURITIES CORPORATION, 1 LIBERTY PLACE, 2ND FLOOR, NEW YORK, NEW YORK 10006-1404.
All figures are in Canadian dollars unless otherwise stated. An exchange rate of Cdn$1.470 per US$1 has been used to derive the value in US dollars, based the rate of exchange on March 22, 2000.
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Web site: www.sunlife.com