Manulife announces intention to redeem Class 1 Series 23 Preferred Shares

Rhea-AI Summary

Manulife Financial Corporation announced plans to redeem all 19 million of its Non-cumulative Rate Reset Class 1 Shares Series 23 on March 19, 2022, for a total cash redemption of C$475 million. Shareholders will receive a final quarterly dividend of C$0.303125 per share on the same date. Following the redemption, shareholders will lose rights to dividends and other entitlements. This initiative is a strategic move to manage capital efficiently, reflecting Manulife's commitment to value for its shareholders.

Positive

• Redemption of Series 23 Preferred Shares demonstrates effective capital management.
• Final dividend payment ensures continued shareholder returns before redemption.

Negative

• Redemption of shares could lead to decreased future dividend payments for investors.

C$ unless otherwise stated

TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Jan. 24, 2022 /PRNewswire/ - Manulife Financial Corporation ("Manulife") today announced its intention to redeem all of its outstanding 19,000,000 Non-cumulative Rate Reset Class 1 Shares Series 23 ("Series 23 Preferred Shares") for cash on March 19, 2022. The Series 23 Preferred Shares (TSX: MFC.PR.R) are redeemable at Manulife's option on March 19, 2022, at a redemption price per Series 23 Preferred Share equal to C$25.00 for an aggregate total of C$475 million. Formal notice will be delivered to holders of Series 23 Preferred Shares in accordance with the terms outlined in the share provisions for the Series 23 Preferred Shares. 

Separately from the redemption price, the final quarterly dividend of C$0.303125 per Series 23 Preferred Share will be paid in the usual manner on March 19, 2022 to shareholders of record on February 23, 2022 or such other record date determined by the board. After the Series 23 Preferred Shares are redeemed, holders of Series 23 Preferred Shares will cease to be entitled to distributions of dividends and will not be entitled to exercise any rights as holders other than to receive the redemption price.

About Manulife

Manulife Financial Corporation is a leading international financial services provider that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our global wealth and asset management segment, we serve individuals, institutions and retirement plan members worldwide. At the end of 2020, we had more than 37,000 employees, over 118,000 agents, and thousands of distribution partners, serving over 30 million customers. As of September 30, 2021, we had CAD$1.4 trillion (US$1.1 trillion) in assets under management and administration, and in the previous 12 months we made CAD$31.6 billion in payments to our customers.

Our principal operations are in Asia and Canada, and the United States, where we have served customers for more than 155 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com

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SOURCE Manulife Financial Corporation

FAQ

What is the redemption date for Manulife's Series 23 Preferred Shares?

Manulife plans to redeem its Series 23 Preferred Shares on March 19, 2022.

How much will Manulife pay to redeem the Series 23 Preferred Shares?

The total cash redemption for the Series 23 Preferred Shares will be C$475 million.

What is the final dividend amount for the Series 23 Preferred Shares?

The final quarterly dividend for the Series 23 Preferred Shares will be C$0.303125.

When will the final dividend be paid to shareholders of the Series 23 Preferred Shares?

The final dividend will be paid on March 19, 2022, to shareholders of record on February 23, 2022.

What will happen to the rights of holders of Series 23 Preferred Shares after redemption?

After redemption, holders will lose their rights to dividends and other entitlements, except for the redemption price.