1st May 2018 08:22
LONDON (Alliance News) - Insurer Aviva PLC on Tuesday said it is to start a GBP600.0 million share buyback in a "compelling" use of the company's excess share capital.
The buyback of ordinary shares, which will be run by Citigroup Global Markets Ltd, will start Tuesday and will be finished by the end of 2018.
The news comes a day after Aviva said it will make a "goodwill payment" to owners of its preference shares who sold during the period from March 8 and March 22, a period of uncertainty for preference shareholders caused by Aviva's plan at the time to redeem the preference shares.
The FTSE 100 insurer said the cost of the payment should not be more than GBP14.0 million.
Aviva originally had announced its plan to cancel the preference shares at the time of its 2017 results early in March, but the plan was met with widespread criticism, and it backtracked on March 23.
Aviva said Monday it recognises "the uncertainty" created for preference shareholders and noted the impact the move had had on its reputation.
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