Suncorp shareholders will receive a special dividend of 8.0 cents per share as the banking and insurance firm starts handing over proceeds from its $725 million Australian life insurance sale.
Suncorp said on Friday it had completed the sale of the unit to a local subsidiary of Dai-ichi Life Group and that the special dividend would account for about $100 million of the $600 million it plans to redistribute to shareholders.
The company said it will update the market on how it will distribute the remaining balance over coming months.
Its preferred plans include share consolidation, which would be subject to shareholder approval
Suncorp's deal with Dai-ichi Life was announced in August and includes a 20-year distribution agreement to sell products provided by the Japanese firm.
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At 1030 AEDT, its shares were 1.33 per cent higher at $13.365.
