Aviva plans $2.3 billion Delta Lloyd IPO float
08 August 2009
UK's largest insurer Aviva plans to raise approximately £1.3 billion ($2.3 billion) by floating its Dutch subsidiary, Delta Lloyd, to fund its expansion.
Aviva Group chief executive Andrew Moss said the company is planning an initial public offer (IPO) of Delta Lloyd and will sell a minority stake of that company when conditions allow.
Mosses said that through the Delta Lloyd IPO, the group can monetise some of the value of the asset, enhance the value of the residual shareholding and make it more liquid.
Analysts value the insurer at approximately £3.2 billion and, assuming a 40 per cent stake sale, the sale would bring about £1.3 billion.
The group is eying acquisition targets which include smaller insurance players in the UK and Europe.
Moss said: ''There are some companies in the UK market that are strategically challenged. We have a terrific track record of putting companies together. We will only do it, if it generates value but we do see opportunities in the next 12 months.''