Aviva-Offering of Delta Lloyd Ord Shares-Pricing

RNS Number : 7385E

Aviva PLC

12 April 2011

 



NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA

12 April 2011

Aviva Announces Pricing of Offering of Delta Lloyd Ordinary Shares at €17.25 per Share 

·      Placing of 25 million Delta Lloyd ordinary shares

·     Offering represents 15% of Delta Lloyd's issued ordinary share capital, resulting in Aviva's ordinary shareholding reducing from 58% to 43%

·      Gross cash proceeds for Aviva of £381 million

·      Settlement of the Offering remains subject to Aviva shareholder approval at an EGM

Aviva plc ("Aviva") announces that it has successfully priced the sale of part of its stake in Delta Lloyd NV ("Delta Lloyd") at an offer price of €17.25 per share, resulting in gross cash proceeds of £381 million*. The partial disposal consisted of a private placement of 25 million Delta Lloyd ordinary shares to qualified institutional investors (the "Offering"). Settlement of the Offering remains subject to Aviva shareholder approval, which will be sought at an extraordinary general meeting of Aviva, expected to be held on 4 May 2011. 

Following completion of the Offering, Aviva's remaining stake will comprise approximately 71.5 million Delta Lloyd ordinary shares, equivalent to 43.1% of Delta Lloyd's issued ordinary share capital (excluding treasury shares) and 40.0% of Delta Lloyd's voting rights.  

A further announcement will be made shortly detailing the financial impact of the Offering on Aviva.

Enquiries:

Media

Nigel Prideaux                                                                         [phone]

Andrew Reid                                                                           [phone]

Sue Winston                                                                           [phone]

Rashmi Gautam                                                                     [phone]

Conor McClafferty, Finsbury                                                   [phone]

Analysts

Charles Barrows                                                                     [phone]

Notes to editors:

Background on Aviva's investment in Delta Lloyd

§ Prior to November 2009, Delta Lloyd's entire issued ordinary share capital (and 92% of Delta Lloyd's voting rights) was owned by CGU International Holdings BV, a wholly owned subsidiary of Aviva.

§ In November 2009, Aviva completed the successful initial public offering ("IPO") and partial sale of its shareholding in Delta Lloyd on NYSE Euronext Amsterdam, pursuant to which Aviva disposed of its indirect 41.1% interest in the ordinary share capital of Delta Lloyd at an offer price of €16.00 per Delta Lloyd ordinary share.

§ The Delta Lloyd IPO and partial sale raised total gross cash proceeds of £1.0 billion, which provided Aviva with greater financial flexibility to reallocate capital and explore other growth opportunities, as well as enhancing the liquidity of Aviva's remaining stake in Delta Lloyd.

§ Prior to the Offering, Aviva indirectly owns 96,488,795 Delta Lloyd ordinary shares, equivalent to 58.2% of Delta Lloyd's issued ordinary share capital (excluding treasury shares) and 53.9% of Delta Lloyd's voting rights. 

About Delta Lloyd 

§ The Delta Lloyd Group is a financial services provider offering life insurance, general insurance, asset management and banking products and services. 

§ In 2010, Delta Lloyd contributed to Aviva an IFRS operating profit of £536 million and IFRS profit before tax of £895 million, and, as at 31 December 2010, IFRS net assets of £4.3 billion, and MCEV net assets of £3.1 billion.

§ Delta Lloyd's target markets are the Netherlands and Belgium. The Delta Lloyd Group operates primarily under the brand names of Delta Lloyd, OHRA and ABN AMRO Insurance in the Netherlands, and under the Delta Lloyd name in Belgium.

About Aviva

§ Aviva is a leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's sixth largest insurance group based on gross worldwide premiums at 31 December 2009.

§ Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales** of £47.1 billion and funds under management of £402 billion at 31 December 2010.

This announcement does not constitute a prospectus or an offer or invitation to purchase securities.

This announcement is only addressed to, and directed at, persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors").  In the United Kingdom, this announcement is directed only at Qualified Investors (i) who are persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) persons who are high net worth entities falling within Article 49(2) of the Order, and other persons to whom it may lawfully be communicated.  Under no circumstances should persons of any other description rely or act upon the contents of this announcement. 

These materials are not an offer of securities for sale into the United States. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from, or in a transaction not subject to, registration under the Securities Act, including pursuant to the private offering exemption provided by Section 4(2) of the Securities Act and outside the United States in reliance on Regulation S under the Securities Act. There will be no public offering of the securities in the United States.

The Offering and the distribution of this announcement and other information in connection with the Offering in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. The price and value of the Delta Lloyd shares may go up as well as down. Persons needing advice should contact a professional adviser. Past performance cannot be relied upon as a guide to future performance.

-  ends -

* Based on an exchange rate as of 11 April 2011 of £0.88 / €1.

** Based on 2010 published life and pensions PVNBP on an MCEV basis, total investment sales and general insurance and health net written premiums, including share of associates' premiums.

 

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