Aviva sells 49 per cent stake in JV group

Aviva, the British multinational insurance company, has agreed to sell a 49 per cent stake in CIMB Aviva to a subsidiary of Sun Life Financial.

Aviva, the British multinational insurance company, has agreed to sell a 49 per cent stake in CIMB Aviva to a subsidiary of Sun Life Financial.

CIMB-Aviva, which is being sold for £152m cash, is a joint venture between Aviva International Holdings and CIG Berhad, which is ultimately owned by CIMB Group Holdings Berhad, one of Malaysia's leading financial groups and parent of CIMB Bank, one of Malaysia's largest banks.

The purpose of the transaction is to continue with the progress made on narrowing the group's focus on businesses and markets where it has a leading position and is able to generate attractive returns with a high probability of success.

The sale will increase Aviva's pro forma economic capital surplus coverage ratio by around 2.0% to 171% (FY 2011: 130%).

Mark Wilson, Chief Executive Officer of Aviva, said: "This is a good deal at an attractive valuation. The sale realises a strong return for our shareholders and is a tangible step in our journey towards a more focused, higher performing organisation. Together with the recent disposal of our remaining stake in Delta Lloyd, this has been a satisfactory start to the year."

The transaction is dependent upon regulatory approval.

The share price fell 0.3% to 367p by 12:53.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021