Aviva-AIA deal signed, announcement today
The sale of global giant Aviva’s Sri Lankan operations to Asian giant AIA had been signed yesterday in Colombo whilst a formal announcement is expected today as reported by the Daily FT on Tuesday.
AIA is a market leader in the Asia Pacific region (ex-Japan) based on life insurance premiums, and holds number one positions in six of its geographical markets. It had total assets of US$119,494 million as of 31 May 2012.
Control (87% stake) of Aviva NDB Insurance is held by Aviva NDN Holdings Lanka Ltd., a joint venture between Aviva Hong Holdings Kong and NDB Capital (formerly CDIC).
Largely on sentiments, Aviva NDB Insurance share price has been on the rise to record levels since last week. Yesterday it gained by Rs. 26.20 to close at Rs. 439.50 whilst it hit an intra-day high of Rs. 445. A direct beneficiary, NDB Capital too has also enjoyed massive gains, though it dipped by Rs. 10.50 to Rs. 489.10 after touching a high of Rs. 506. Parent NDB gained by Rs. 8.90 to Rs. 152.20 whilst its intra-day high was Rs. 155.
