Sep
19
Aviva Plc (AV/) agreed to sell its stake
in a joint venture to NCG Banco for 287 million euros ($370
million) after a court ruled the Spanish lender had breached a
agreement with the British insurer.
The sale of its holding in CxG Aviva followed a decision by
the Arbitration Tribunal in Madrid that NCG had broken an
agreement to sell Aviva’s products after the merger of Caixa
Galicia and Caixa Nova in 2010, according to a statement today.
The deal increases Aviva’s surplus capital by about 200 million
pounds ($327 million), it said.
“This is a good outcome for Aviva which reflects the
strong agreements we have in place,” David McMillan, chief
executive officer of Aviva Europe, said in the statement. “We
remain focused on maximizing returns from our Spanish business
in a recovering economy.”
Aviva, Britain’s second-biggest insurer, sold a stake in
joint venture Aseval to Bankia SA for about 608 million euros in
2012 after reaching a similar settlement. The insurer’s other
joint ventures with Banco Mare Nostrum SA, Banco CEIIS, Unicaja
Banco SA and Pelayo Seguros are unaffected by the ruling, the
insurer said today.
The deal is expected to be completed by the end of 2014 and
the proceeds used for general purposes, Aviva said.
To contact the reporter on this story:
Sarah Jones in London at
sjones35@bloomberg.net
To contact the editors responsible for this story:
Edward Evans at
eevans3@bloomberg.net
Jon Menon
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