Business NEWS
Aviva To Raise Around EUR1B In Delta Lloyd IPO on Euronext Amsterdam
By Mike Martinez for CEOWORLD Magazine Updated:October 5, 2009
Get CEOWORLD Magazine digital monthly version. special- Top Capital Cities for a business Traveler, # Interview with Minister of Tourism of Greece. 1 Issues Subscription= $1 Only, 10 Issues Subscription= $5 Only. Grab your copy now!!!!
U.K. insurance firm Aviva [AV.LN] said that financial services provider Delta Lloyd will proceed with a listing and initial public offering on Euronext Amsterdam.
As part of the IPO, Aviva will sell a minority of its holding in Delta Lloyd.
Analysts estimate it could raise £1.3 billion in the float.
Delta Lloyd’s regulatory valuation is £3.7 billion and Aviva is likely to sell between 30 and 35 per cent.
The U.K. insurer said it will keep a majority stake in Delta Lloyd in the transaction, which it had flagged in August. Aviva Chief Executive Andrew Moss said last week it will sell at least 30% of Delta Lloyd’s shares. It holds 92% of the company.
Aviva said the offering “would bring the flexibility to pursue balance sheet restructuring opportunities or to explore other opportunities for growth.”
It said Delta Lloyd would benefit from a new base of shareholders supportive of its growth ambitions in the Benelux region, and put the Dutch company in a better position as the industry readies for a round of consolidation in the Netherlands and Belgium.
Delta Lloyd offers life insurance, general insurance, fund management and banking products, mainly in the Netherlands and Belgium. At June 30, its market-consistent embedded value was EUR4.1 billion net of minorities, including life MCEV of EUR4.3 billion, gross of minorities. It had gross written premiums for the six months ended June 30 of EUR2.8 billion, and total assets of EUR63.1 billion.
Aviva Chief Executive Andrew Moss said in August that Aviva was on the lookout for takeovers, and that Delta Lloyd might also make acquisitions as the Benelux financial services sector undergoes a wave of consolidation.
Delta Lloyd confirmed on Monday that the IPO will “provide the opportunity to consider consolidation options which the Delta Lloyd Group foresees in the Netherlands and Belgium.”
Sources familiar with Aviva’s IPO plans said in August that the company expects to raise about 1 billion euros ($1.45 billion) from the sale of a 25 percent stake in Delta Lloyd, suggesting a 4 billion euro valuation for the business as a whole.
Delta Lloyd had an embedded value — a measure of insurance companies’ worth which includes the present value of future earnings from long-term life insurance contracts — of 4.1 billion euros at the end of June, Aviva said on Monday.
Related Reading:
BusinessThe tenth edition of this best-selling introductory text features an up-to-date, comprehensive survey of the functional areas of business: management,... Read More >
The Secret Language of Business: How to Read Anyone in 3 Seconds or LessThe Secret Language of Business reveals the secrets of body language and nonverbal communication. Successful professionals need more than just good co... Read More >
Business, Second Edition: The Ultimate Resource (Business : the Ultimate Resource)The "Business Bible" that captured the imaginations and fueled the ambitions of readers from the boardroom to the mailroom has now been completely rev... Read More >
Small Business For DummiesWant to start the small business of your dreams? Want to breathe new life into the one you already have? Small Business For Dummies, 3rd Edition provi... Read More >
Good to Great: Why Some Companies Make the Leap... and Others Don'tThe Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sust... Read More >
Like this article!
(No Ratings Yet)
Loading ...1788 views
Comments
Grab a copy of CEOWORLD Magazine for $1 only!!!
