Aviva PLC Acquisition of Additional 23% Share in Aviva India
May 03 2016 - 2:31AM
Dow Jones News
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RNS Number : 8979W
Aviva PLC
03 May 2016
3 May 2016
Aviva completes the acquisition
of an additional 23% share in Aviva India
Aviva plc ("Aviva") has completed(1) the acquisition of an
additional 23% share in Aviva Life Insurance Company India Limited
("Aviva India") from its joint venture partner Dabur Invest Corp (a
part of the Dabur Group) ("Dabur").
The acquisition follows recent regulatory changes which allowed
Aviva to increase its shareholding to 49%, being the maximum
permitted under India's foreign direct investment limits ("FDI").
The transaction is expected to have a neutral impact on Aviva's
IFRS Net Assets. In 2015, Aviva India contributed GBP36m to Aviva's
IFRS Net Assets(2) and GBP4m to Aviva's Profits(3) .
Aviva India is a life insurance joint venture between Dabur and
Aviva which was formed in 2001. As is customary in such joint
venture arrangements, the original agreement between the parties
includes options exercisable in the event of future changes in FDI
for which Aviva pays an annual option price to Dabur(4) . These
options allow Aviva to purchase, or Dabur to sell shares at
prevailing fair market value(5) such that Aviva would hold up to
the maximum number of shares permitted under FDI.
Enquiries:
Media
Andrew Reid +44 (0)20 7662 3131
Analysts
Chris Esson +44 (0)20 7662 8115
David Elliot +44 (0)20 7662 8048
-ends-
1. Completion occurred on 29 April 2016
2. Represents Investment in Associate at 31 December 2015 for
Aviva's 26% share of Aviva India
3. Represents Aviva's share of profit before tax in Aviva India
for the year ended 31 December 2015
4. Option price payable by Aviva to Dabur calculated by
reference to Dabur's share capital invested in Aviva India
5. Prevailing fair market value to be agreed between Aviva and
Dabur or, failing such agreement, determined by an independent
expert. This payment is subject to a minimum amount, being the
relevant proportion of Dabur's share capital invested in Aviva
India and would be payable in cash
Notes to editors
-- Aviva provides life insurance, general insurance, health
insurance and asset management to 33 million customers, across 16
markets worldwide
-- In the UK we are the leading insurer serving one in every
four households and have strong businesses in selected markets in
Europe, Asia and Canada. Our shares are listed on the London Stock
Exchange and we are a member of the FTSE100 index.
-- Aviva's asset management business, Aviva Investors, provides
asset management services to both Aviva and external clients, and
currently manages over GBP289 billion in assets.
-- Aviva helps people save for the future and manage the risks
of everyday life; we paid out GBP30.7 billion in benefits and
claims in 2015.
-- By serving our customers well, we are building a business
which is strong and sustainable, which our people are proud to work
for, and which makes a positive contribution to society.
-- The Aviva media centre at http://www.aviva.com/media/
includes company information, images, and a news release
archive.
-- For an introduction to what we do and how we do it, please click here http://www.aviva.com/about-us/aviva/
-- For broadcast-standard video, please visit http://www.aviva.com/media/b-roll-library/
-- Follow us on twitter: www.twitter.com/avivaplc/
-- Follow us on LinkedIn: www.linkedin.com/company/aviva-plc
-- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEASLNAADKEFF
(END) Dow Jones Newswires
May 03, 2016 02:16 ET (06:16 GMT)
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