Aviva sells 49 per cent stake in JV group

17th Jan 2013 12:19

Aviva, the British multinational insurance company, has agreed to sell a 49 per cent stake in CIMB Aviva to a subsidiary of Sun Life Financial. CIMB-Aviva, which is being sold for £152m cash, is a joint venture between Aviva International Holdings and CIG Berhad, which is ultimately owned by CIMB Group Holdings Berhad, one of Malaysia's leading financial groups and parent of CIMB Bank, one of Malaysia's largest banks.The purpose of the transaction is to continue with the progress made on narrowing the group's focus on businesses and markets where it has a leading position and is able to generate attractive returns with a high probability of success.The sale will increase Aviva's pro forma economic capital surplus coverage ratio by around 2.0% to 171% (FY 2011: 130%).Mark Wilson, Chief Executive Officer of Aviva, said: "This is a good deal at an attractive valuation. The sale realises a strong return for our shareholders and is a tangible step in our journey towards a more focused, higher performing organisation. Together with the recent disposal of our remaining stake in Delta Lloyd, this has been a satisfactory start to the year."The transaction is dependent upon regulatory approval.The share price fell 0.3% to 367p by 12:53.NR