(By Balachander) British insurer Aviva Plc (NYSE:AV) announced plans to sell up to 25 million shares or $341 million stake in Netherlands-based Delta Lloyd as part of its move to focus on fewer business segments.
Earlier today, the company disclosed its intention to exit 16 "non-core" underperforming businesses in a move to boost revenue and its share price performance.
The latest offering is equivalent to up to 14 percent of Delta Lloyd's issued ordinary share capital.
If all the Delta Lloyd shares available in the offering are sold, Aviva's remaining stake would comprise roughly 47 million Delta Lloyd shares, or around 27 percent.
Aviva has entered into a placing agreement with Morgan Stanley (MS) and Goldman Sachs (GS) to act as joint bookrunners and placing agents in relation to the Offering.
Delta Lloyd is a financial services provider offering life insurance, general insurance, asset management and banking products and services.
Prior to November 2009, Delta Lloyd's entire issued ordinary share capital was owned by CGU International Holdings B.V., a wholly owned subsidiary of Aviva. In November 2009, Aviva completed the successful initial public offering and partial sale of its shareholding in Delta Lloyd on NYSE Euronext Amsterdam, under which Aviva sold a 41.1 percent interest in the ordinary share capital of Delta Lloyd.
In May 2011, Aviva carried out a further partial sale of its indirect shareholding in Delta Lloyd pursuant to which Aviva disposed of about 15 percent of the issued ordinary share capital of Delta Lloyd.
American depositary receipts (ADR) of Aviva fell 1.67 percent to trade at $8.83 on Thursday.