Aviva to Sell Friends Provident to RL360 Holding for Up to GBP340 Million
19 July 2017 - 4:51PM
Dow Jones News
By Razak Musah Baba
LONDON--Aviva PLC (AV.LN) is selling Friends Provident
International Ltd. (FPIL) to RL360 Holding Co., a subsidiary of
International Financial Group Ltd., for up to 340 million pounds
($437.9 million).
The insurer said Wednesday that following a strategic review of
FPIL, it has concluded that the business isn't central to the
group's strategy to focus on a small number of markets where it has
scale and profitability or a distinct competitive advantage.
Aviva said the sale will create a loss on disposal of GBP130
million, which is primarily due to the intangible assets held on
Aviva's balance sheet arising from Aviva's acquisition of FPIL in
2015.
In 2016, FPIL made a loss after tax of GBP2 million and didn't
remit any cash to Aviva. As a result, a disposal of FPIL is
expected to be positive to Aviva's cash dividend paying capacity,
Aviva said.
The transaction is subject to customary regulatory approvals and
is expected to complete in early 2018.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
July 19, 2017 02:36 ET (06:36 GMT)
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