Sep
19
British life and health insurer Aviva Plc. (AV.L,AV: Quote) said Friday that it agreed to sell its stake in Spanish joint venture CxG Aviva to Novacaixagalicia Banco for 287 million euros or 226 million pounds in cash.
The transaction results from a decision by the Arbitration Tribunal in Madrid issued today, which concludes legal proceedings between Aviva and NCG Banco.
The Tribunal has determined a breach by NCG Banco of its shareholder agreement with Aviva following the merger of Caixa Galicia and Caixa Nova into Novacaixagalicia in December 2010, and the bank’s subsequent restructuring in 2011.
Aviva stated that cash proceeds will increase its group liquidity by 226 million pounds, and will be used for general corporate purposes.
The transaction will increase Aviva’s IFRS net asset value by approximately 4 pence per share and economic capital surplus by approximately 0.2 billion pounds as at half year of 2014. In 2013 CxG Aviva contributed IFRS operating profit of 27 million pounds.
The transaction is expected to complete by the end of 2014 and is subject to regulatory approvals in Spain.
Aviva said that its joint ventures with Banco Mare Nostrum, Banco CEIIS, Unicaja and Pelayo Seguros, and agency distribution unit Aviva Vida y Pensiones are unaffected by this ruling.
by RTT Staff Writer
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