9th Feb 2017 08:19
LONDON (Alliance News) - Aviva PLC said Thursday it has agreed to sell its 50% stake in life insurance joint venture Antarius to a subsidiary of French bank Societe Generale SA for approximately GBP425.0 million.
The FTSE 100-listed insurer said it will sell the holding to SocGen subsidiary Sogecap, following the exercise of a purchase option. The selling price is approximately 1.7 times Aviva's share of the net asset value of Antarius, or GBP180.0 million above its book value.
The sale will increase Aviva's Solvency II capital, a measure of financial strength, by approximately GBP200.0 million. Completion of the sale is expected in April.
Aviva Investors France has entered an agreement with Sogecap to continue managing over EUR10.00 billion in assets held by Antarius.
"This is a good deal at an attractive valuation and the sale realises a strong return for our shareholders. We have also agreed a new investment management mandate with Antarius and we look forward to continuing our long and successful partnership with Societe Generale," said Mark Wilson, chief executive of Aviva.
Aviva shares were up 0.9% to 498.40 pence on Thursday morning.
By Adam Clark; [email protected]
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