(Adds details, quotes)
By Nishant Kumar
LONDON, July 11 Friends Life Group Ltd
announced disposal of its Lombard unit to Blackstone Group
for an initial consideration of 317 million pounds ($532
million) and said it will use part of the proceeds to buy-back
The deal, expected to be completed in the second half of
2014, includes 261 million pounds in cash payment, which the
insurer will use to buy-back shares.
"This disposal further improves our cash coverage of the
dividend and is in line with our strategy to maximise value from
each part of the Group," Andy Briggs, Group chief executive of
Friends Life said in a statement on Friday.
"It moves the Group further towards being a streamlined life
insurance company, focused on serving our customers in the UK
and our hubs in Hong Kong, Singapore and the UAE through Friends
Friends Life will sell its entire share capital in
subsidiaries Lombard International Assurance S.A. and Insurance
Development Holdings AG, jointly known as Lombard.
The deal involves a total consideration of up to 356 million
pounds based on an additional contingent element, it said in the
($1 = 0.5956 British Pounds)
(Reporting by Nishant Kumar; Editing by Clare Hutchison)