Dutch insurance firm Aegon NV (AEG,AGN.L) said on Wednesday that it has completed the divestment of its Hungarian businesses to Vienna Insurance Group AG or VIG. In addition, the company announced a 300 million euros share repurchase drive.
The gross proceeds of the sale amount to 620 million euros.
As announced in 2020, the divestment serves as part of the full closing of the sale of Aegon's insurance, pension, and asset management businesses in Central and Eastern Europe to VIG for 830 million euros.
The divestments of the insurance company's businesses in Poland, Romania, and Turkey are expected to be completed in 2022.
Lard Friese, CEO of Aegon said, "Today's announcement marks an important step in the transformation of Aegon as we narrow our strategic focus to select core and growth markets, and further strengthen our balance sheet."
With the sales of its businesses, Aegon intends to return 300 million euros of surplus cash capital to shareholders via a share buyback, which will be executed in three tranches of 100 million euros each.
The 300 million euros share buyback program will begin on April 1, and is expected to be completed on or before December 15.
The first tranche of 100 million euros is expected to be completed on or before June 30.
A debt repayment will also be executed through a 375 million euros tender offer for six subordinated bonds.
After completion of the tender offer, Aegon will have reduced its gross financial leverage to the range of 5 billion euros to 5.5 billion euros, the company said in a statement.
For comments and feedback contact: editorial@rttnews.com
Business News