Canada Life's Irish shareholders have this week started to receive cheques or shares worth an average of €7,200, following the completion of the financial group's acquisition by Canadian rival Great-West LifeCo. Dominic Coyle reports.
More than 25,000 Irish shareholders - almost all customers of the former mutual - were offered the choice of receiving cash and/or shares in the new owner for their Canada Life holding.
Great-West Life paid just 60 per cent of the purchase price for Canada Life in cash, with the balance in different categories of shares. That raised fears that small investors would find themselves paid partly in shares of an unfamiliar company, which trades solely on the Toronto Stock Exchange, if investors holding more than 60 per cent of the Canada Life stock sought payment in cash.
As it turned out, just under 60 per cent of shareholders applied for their return in cash, meaning all will be paid as they wish.
Demand for Great-West Life's ordinary shares more than doubled the number of those shares available and allocations were cut back. Applications for payment in special category shares - closer to corporate bonds - were less than supply.
However, almost a quarter of Canada Life shareholders failed to indicate how they wanted to receive payment. They have now received a mixture of cash and different types of shares.
The company is offering an assisted-sale programme for small shareholders - those holding less than 100 shares or less in each category - looking to sell unwanted shares on the Toronto market at low cost.
The company will arrange the sale of the shares for a one-off commission charge of €32 per customer through Computershare. However, sellers availing of the scheme must sell all their shares.
Customers with queries about the sale process can contact a special freefone number 1800 523159.
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