Aviva plc today announced that it intends to sell a minority of its shares in Delta Lloyd N.V. in a move that it hopes will bring in one billion pounds.
By Chris Farnell
Aviva, the fifth largest insurance group in the world, intends to make an Initial Public Offering (IPO) on the Euronext Amsterdam stock exchange, “subject to market conditions.” Part of the IPO would include a minority of its shares in Delta Lloyd.
BENEFITS
The deal will allow Aviva opportunities to restructure its balance sheet and “explore other opportunities for growth.” It also hopes to benefit from an increased value and liquidity in its remaining stake of Delta Lloyd. The move will hopefully put Delta Lloyd in a better position ahead of anticipated consolidation in the Netherlands and Belgium.
Analysts have also speculated that Aviva could raise over one billion pounds through floating its shares, allowing it to fend off a possible takeover bid from Resolution plc.
Aviva has said that it expects to publish a prospectus for the float later this month, and for the IPO to be complete in November.