Having promised on Thursday that it would raise money from disposals, insurance giant Aviva has moved quickly to act on that pledge by saying it will sell more of its stake in Delta Lloyd than originally intended.
The original plan was to offload up to 25m shares in the Dutch insurer by way of an accelerated book-building operation in the market but demand has been so strong the size of the disposal has been increased to up to 37m shares, equivalent to up to 21% of Delta Lloyd's issued ordinary share capital.
If all the Delta Lloyd ordinary shares available in the offering are sold, Aviva's remaining stake would comprise approximately 34m Delta Lloyd ordinary shares, equivalent to just below 20% of Delta Lloyd's issued ordinary share capital (including treasury shares) and 19% of Delta Lloyd's voting rights.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In addition, Aviva will commit to a longer lock-up than previously announced, and will now undertake not to dispose of more Delta Lloyd shares outside the Aviva group for a period of 180 days
Aviva said the larger disposal will accelerate its strategy, outlined on Thursday, of narrowing focus on fewer business segments and building financial strength.
JH
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
