3rd May 2016 06:17
LONDON (Alliance News) - Aviva PLC on Tuesday said it completed the acquisition of an additional 23% stake in its Indian life insurance joint venture from partner Dabur Invest Corp, taking the FTSE 100 life insurer's holding up to 49%.
The move follows regulatory changes allowing Aviva to take a stake of up to 49%, the maximum allowed under India's foreign direct investment limits.
The joint venture, formed in 2001, contributed GBP36 million to Aviva's net assets in 2015, and the transaction with Dabur is expected to have a "neutral impact" on Aviva's net assets.
The original agreement includes options, which, in the event of future changes to foreign direct investment rules, would allow Aviva to buy, or Dabur to sell, shares at fair market value up to the maximum allowed under India's rules.
By Samuel Agini; [email protected]; @samuelagini
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