The move is expected to drive ongoing shareholder value creation through effective capital management that maximizes return on invested capital
Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, filed a preliminary proxy statement today to move the jurisdiction of incorporation for the firm’s parent company from the United Kingdom (UK) to Ireland. Remaining within the European Union single market will help the firm maintain a stable corporate structure and capital flexibility.
The move is expected to drive ongoing shareholder value creation through effective capital management that maximizes return on invested capital. Moving the jurisdiction of incorporation for Aon’s parent company will not result in any material change to Aon’s current business operations, reporting requirements or listings. The transaction is expected to be completed in the first quarter of 2020.
Aon will maintain the firm’s operating company headquarters at the Leadenhall Building in London and the firm’s commitment to the UK and the important London insurance market remains unchanged and unrivalled. Over the last several years, Aon has solidified its position in the UK domestic market, with the acquisitions of, among others, Henderson and Portus Consultancy, which doubled the firm’s retail business within the UK, and added 500 UK colleagues.
Summary of Change to Jurisdiction of Incorporation
Aon plc (the “Company”) will change the jurisdiction of incorporation of its parent company from the United Kingdom to Ireland through a transaction that will result in a new publicly held parent company incorporated in Ireland. This proposed reorganization (the “Transaction”) will require shareholder approval. If shareholders approve the Transaction, the Company will be required to make a subsequent application to the High Court of Justice of England and Wales to seek approval. This application is expected to be heard, and the Company currently anticipates that the Transaction will be completed, in the first quarter of 2020. Upon completion of the Transaction, each shareholder will own the same number of Class A ordinary shares (US dollar denominated) of the new Irish public limited company that such shareholder owned immediately prior to completion of the Transaction, and each shareholder’s proportionate ownership and relative voting rights will remain unchanged. The shares of the new Irish parent company are expected to be listed on the NYSE, and the Company will continue to report earnings and other financial statements in accordance with Securities and Exchange Commission (“SEC”) regulations, including dollar denominated financial statements.
Source: Company Press Release