27th Dec 2023 11:08
(Alliance News) - Aviva PLC on Wednesday said it will receive additional payment from the September sale of its stake in Singapore Life Ltd.
The London-headquartered provider of insurance, wealth and retirement products said it now expects an extra GBP80.0 million of additional proceeds for its 26% stake in the Singaporean insurance company. This would bring the total amount Aviva will receive to around GBP930 million from Osaka, Japan-based buyer Sumitomo Life Insurance Co.
The extra payment, Aviva said, was incurred due to Sumitomo also agreeing to purchase TPG Inc's equity stake in Singlife. Aviva's receipt of the additional proceeds depends on the completion of this separate transaction.
Aviva expects the disposal of its Singlife stake, which remains subject to customary closing conditions and regulatory approvals, to be completed in the first quarter of 2024. The sale proceeds "will be considered alongside Aviva's existing capital management framework" under which surplus capital is available for reinvestment in the business, for bolt-on mergers and acquisitions, and for providing additional returns to shareholders.
Shares in Aviva were up 0.2% at 431.80 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
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