Aberdeen Group has announced plans to sell half its stake in Standard Life as part of efforts to simplify its business and strengthen its balance sheet.
The Edinburgh-based investment group intends to sell 52 million shares, representing approximately 5.2% of Standard Life's issued share capital, to institutional investors through an accelerated book-building process.
The transaction will reduce Aberdeen's holding from 10.3% to 5.2%, although it will remain one of Standard Life's largest shareholders and continue its longstanding asset management partnership with the company.
The sale price has yet to be determined, with the results expected to be announced before the London Stock Exchange opens on Thursday.
Aberdeen said the proceeds would support investment in growth, debt reduction and shareholder returns, with the group expecting to redeem £210million of debt in December.
Chief executive Jason Windsor said: "The transaction announced today is further progress to simplify our group, as we seek to deliver on our ambition to become the UK's leading Wealth and Investments business. We see attractive opportunities to invest in growth and will continue to allocate capital where we believe it can generate the best returns for shareholders, while maintaining a strong balance sheet.
"Aberdeen and Standard Life have worked in close partnership for many years, and we look forward to continuing to deliver as a key asset management partner to Standard Life."