The FINANCIAL — U.K. insurance firm Aviva said on October 5 that it will sell a minority of its holding in its Dutch subsidiary Delta Lloyd in a stock market listing scheduled for next month.
It is expected to sell between 30% and 49% of the unit, which is valued at 4.3bn euros ($6.3bn; £3.9bn), according to BBC. The price-tag of over £1bn means it is likely to be Europe's biggest public offering for at least 18 months.
The operation is one of the top five financial services providers in the Netherlands, with around £40 billion in assets under management. It employs about 6,400 staff, Press Association reported. The listing is taking place sooner than expected after Aviva said at its interims in August that a sale would not take place until next year.
Aviva owns 100% of the shares in Delta Lloyd, but only 92% of the voting rights as a result of an arrangement with a charitable trust, according to BBC. Delta Lloyd operates mainly in the Netherlands and Belgium and also uses the OHRA and ABN Amro Insurance brands. It offers life insurance, general insurance, fund management and banking services.
The insurer first said that it aimed to float Delta Lloyd "when market conditions allow" at its interim results in August, Times informs. Analysts estimate it could raise £1.3 billion in the float, giving it the firepower to make acquisitions in both the UK and overseas and help defend itself against a potential takeover bid from Resolution, Clive Cowdery's company.
The insurer said that the move to sell a minority of its stake in the Dutch group would give Aviva: "The flexibility to pursue balance sheet restructuring opportunities or to explore other opportunities for growth," the same source reported. It added: "Delta Lloyd would benefit from a new shareholder base supportive of the company’s growth ambitions in the Benelux region, and a public listing would help to better position Delta Lloyd ahead of anticipated consolidation in the Netherlands and Belgium."
Discussion about this post