Sale to drum up cash for insurer
Aviva has announced that it wants to sell the rest of its shareholding in financial services firm Delta Lloyd NV.
In a statement, the insurer said the sale would let Aviva concentrate on fewer business areas and build financial strength.
The insurer has 34.3 million ordinary shares in the business that it wants to sell through a private placement to qualified institutional investors. That makes up 19.4% of Delta Lloyd’s ordinary share capital and 18.2% of its voting rights.
The cash will be used to increase Aviva’s easy access to cash and for “general corporate purposes,” according to the statement.
Aviva will work out an offer price based on an accelerated book-build offering process.
Aviva chief executive Mark Wilson said: “This sale will be a good start to 2013 and supports our strategy to narrow focus and make Aviva a more nimble and athletic organisation. It will further increase Aviva’s cash and capital position and is consistent with our focus on businesses where we can earn higher returns.”
Morgan Stanley, Goldman Sachs and Barclays will work with Aviva on the sale.