16th Jul 2020 09:35
(Alliance News) - London-based Aviva PLC on Thursday confirmed the sale of Friends Provident International Ltd to RL360 Holding Co, a subsidiary of International Financial Group Ltd.
Under revised terms, Aviva has sold a 76% shareholding in Friends Provident to International Financial for GBP259 million in cash, comprising an initial payment of GBP209 million and a deferred GBP50 million.
The insurance, savings, and investments company said the transaction would not have much of an impact on its solvency II capital surplus.
FPIL's operating profit was GBP128 million and net profit was GBP2.5 million in 2019.
Aviva said it entered into a shareholders' agreement with IFGL, under which Aviva has "certain ongoing commitments and customary rights" given the minority shareholding.
Aviva had previously announced the sale of 100% shareholding in FPIL for a total consideration of GBP340 million.
Aviva shares were down 1.0% at 291.00 pence each on Thursday morning in London.
By Greg Roxburgh; [email protected]
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