17th May 2006 10:00
Aviva PLC17 May 2006 News release 17 May 2006 AVIVA SELLS 50% STAKE IN LEX VEHICLE LEASING TO HBOS Aviva plc ("Aviva") and HBOS plc ("HBOS") announce the sale of Aviva's 50% stakein Lex Vehicle Leasing (Holdings) Limited ("LVL") to HBOS, its 50:50 jointventure partner in LVL, for £226.8 million in cash. Aviva acquired its 50% stake in LVL as part of its acquisition of RAC last year.Under the terms of the LVL joint venture agreement (the "JV agreement"), thechange of control of RAC provided HBOS with the right to acquire Aviva's 50%interest in LVL. As announced by Aviva on 11 October 2005, HBOS chose toexercise this right. Aviva and HBOS jointly appointed PricewaterhouseCoopers LLP to act as anindependent expert to determine the fair market value of Aviva's 50% stake inLVL in accordance with the JV agreement. The sale of LVL is expected to complete by 31 May 2006. HBOS will then take fullownership of this market-leading vehicle leasing business, which currentlymanages 175,000 vehicles. - ends - Enquiries: Aviva Media Hayley Stimpson, director of external affairs +44 (0)20 7662 7544Vanessa Booth, group media relations manager +44 (0)20 7662 2482Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200 Aviva Analysts Charles Barrows, investor relations director +44 (0)20 7662 8115Jessie Burrows, head of investor relations +44 (0)20 7662 8302 HBOS MediaMark Elliott, head of media relations +44 (0)131 243 5572Shane O'Riordain, general manager, group communications +44 (0)131 243 7145 HBOS Analysts John Hope, director of investor relations +44 (0)131 243 5508 Notes to editors: • LVL was a 50:50 joint venture between RAC and HBOS. LVL providesvehicle leasing, supply, management, maintenance and incident support forcompanies who outsource the day-to-day operations of their fleets. • HBOS is the banking and financial services group formed from themerger of Halifax and Bank of Scotland in 2001. Today, two out of every five UKhouseholds are HBOS customers. With assets of over £540 billion, it is the UK'slargest mortgage and savings provider as well as being a major player in theprovision of new current accounts and credit cards in the UK. It is also agrowing force in corporate and business banking. With around 2.3 millionprivate shareholders, HBOS has the largest shareholder register in the UK.Profit before tax for the year ended 31st December 2005 was £4.8 billion • Aviva is the world's sixth largest insurance group based on grossworldwide premiums and market capitalisation (at 31 December 2004), and is oneof the leading providers of life and pensions to Europe, with substantialpositions in other markets around the world. • Aviva's principal business activities are long-term savings, fundmanagement and general insurance, with worldwide total sales of £35 billion andassets under management of £317 billion at 31 December 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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