Great-West Lifeco Inc. has completed its previously announced €1.3-billion (C$1.7-billion) acquisition of Irish Life Group Ltd., Ireland’s biggest life and pensions company.
Great-West Lifeco Inc., an international financial services holding firm, carried out the transaction through its indirect wholly owned subsidiary in Ireland, Canada Life Ltd., a life assurance company.
Completing this transaction is a great milestone for Great-West’s companies in Ireland, says Paul Mahon, Great-West president and CEO.
“We are now the leading provider of life insurance, pensions and investment management in Ireland, consistent with Great-West Lifeco’s global business strategy of developing significant market positions in the sectors where the company participates,” Mahon explains.
“Combining the businesses of Irish Life and Canada Life in Ireland under the Irish Life brand will help ensure that Irish Life remains the leading brand in the Irish financial services market,” he adds.
As a result of the acquisition, Great-West’s 48,660,000 outstanding subscription receipts will be automatically exchanged on a one-for-one basis for common shares of Great-West.
In addition, a dividend equivalent payment of $0.3075 per subscription receipt will be payable to holders of subscription receipts. This is because, in May, Great-West declared that a dividend of $0.3075 per common share should be payable to common shareholders of record.
Great-West Lifeco expects that trading in the subscription receipts will be halted before the commencement of trading on July 18, 2013, and that the subscription receipts will be delisted at the close of business on July 18, 2013. The subscription receipt exchange would increase the total number of outstanding common shares to 1,000,450,840.
While closing the acquisition, Great-West also announced a new CEO for Irish Life—Bill Kyle, executive vice-president, wealth management, with Great-West. Kyle has worked at Great-West’s subsidiaries for 34 years. Most recently, he has led the integration of the company’s Canadian group and individual wealth businesses, which serve more than two million policyholders with more than $88 billion in assets.
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