25th Mar 2014 08:56
LONDON (Alliance News) - Aviva PLC Tuesday said it has sold its Turkish general insurance business, Aviva Sigorta AS, to a private equity consortium led by EMF Capital Partners, as the FTSE 100 life insurer continues its strategy of narrowing its focus to business with more attractive returns.
Aviva said its life and pensions business in Turkey, AvivaSA, won't be affected by the transaction, calling it a "key growth business" and one of its "future cash generators."
The sale is subject to relevant regulatory approval and is expected to complete in the first half.
Under the terms of the deal, emerging markets-focused EMF, which tends to invest in the financial services industry, will be Aviva Sigorta's majority shareholder, with FMO, a large European bilateral private sector development bank, and KfW DEG, a large European development finance institution, each acquiring equal, minority stakes.
Aviva has been undertaking a restructuring programme in an effort to try and turn more of its profits into cash. It has been shrinking the business, selling off a number of assets, as it focuses on cash-generating operations.
Aviva shares were Tuesday quoted at 479.80 pence, up 0.7%.
By Samuel Agini; [email protected]; @samuelagini
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