F&C Asset Management is to become an independently listed fund manager following court approval being given for the demerger of Friends Provident Group’s 52 per cent stake in the firm.

Once the demerger becomes effective Alain Grisay will resign from the board of directors of Friends Provident Group, but will remain a director of F&C in the role of chief executive, Friends Provident said in a statement.

Sir Adrian Montague and Trevor Matthews will resign from the board of directors of F&C and will remain the chairman and chief executive of Friends Provident Group, respectively. Gerhard Roggemann is an independent director of Friends Provident and a non-executive director of F&C and will remain a director of both companies.

Under the terms of the demerger, shareholders will receive one F&C share for every 10 Friends Provident shares held on 2 July 2009. It has also been determined that shareholders who would receive 250 F&C shares or fewer will have those shares sold on their behalf and receive the proceeds of the sale.

Friends Provident has structured the demerger as a return of capital to shareholders. The demerger reduction will reduce the nominal value of each ordinary share in the capital of Friends Provident Group from 20p to 5p, creating approximately £190 million ($311 million) of distributable reserves, the firm said.

Friends Provident put F&C up for sale in January 2008, holding talks with a number of possible buyers before deciding to pull the offer of sale in March of this year.