British insurer Aviva Plc (AV: Quote,AV.L) Friday announced the pricing of its stake in Delta Lloyd NV at 10.75 euros per share, resulting in gross cash proceeds of 318 million pounds. The partial disposal consisted of a private placement of 37 million Delta Lloyd ordinary shares.
On Thursday, the company enhanced the size of the sale of its stock in Delta Lloyd to up to 37 million shares from 25 million shares, citing favorable investor demand. The offering is equivalent to up to 21 percent of Delta Lloyd's issued ordinary share capital, including treasury shares, and up to 20 percent of Delta Lloyd's voting rights. Aviva noted that the partial disposal of the shares will be through a private placement to qualified institutional investors.
In the event of the sale of all Delta Lloyd shares available in the offering, Aviva's remaining stake in the company would be about 34 million shares, equivalent to just below 20 percent of Delta Lloyd's issued ordinary share capital, including treasury shares, and 19 percent of Delta Lloyd's voting rights.
In addition, Aviva said it will commit to a longer lock-up than previously announced and will now undertake not to dispose of more Delta Lloyd shares outside the Aviva group for a period of 180 days following completion.
Aviva has entered into a placing agreement with Morgan Stanley and Goldman Sachs to act as joint bookrunners and placing agents in relation to the offering.
Aviva noted that prior to November 2009, Delta Lloyd's entire issued ordinary share capital, and 92 percent of Delta Lloyd's voting rights was owned by Aviva's unit CGU International Holdings B.V.
In November 2009, Aviva disposed of 41.1 percent interest in the ordinary share capital of Delta Lloyd and in May 2011, it sold nearly 15 percent of share capital.
AV.L is currently trading at 293.8 pence, up 9.20 pence or 3.23 percent, on a volume of 6.73 million shares on the LSE.
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by RTT Staff Writer
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