Sri Lanka’s AVIVA Insurance acquired by AIA Group
AIA buys Sri Lanka's AVIVA Insurance
Sri Lanka’s AVIVA NDB Insurance has been acquired by AIA group through AVIVA NDB Holdings Lanka Private Limited from British insurer AVIVA and Sri Lanka’s National Development Bank.
Aviva NDB is a joint venture between Aviva Asia Holdings Private Limited and Sri Lanka’s leading financial group NDB Bank (“NDB”).
Aviva plc has sold its entirety stake of 58.44% in Aviva NDB Holdings Lanka (Private) Limited to the American International Assurance Company Limited, a subsidiary of AIA Group Limited.
Aviva PLC says, the sale was done for a consideration of £31 million payable in cash.
John McFarlane, chairman of Aviva plc, said: “The sale of our stake in Aviva NDB is an example of further progress towards narrowing the group’s focus, as we concentrate on fewer business segments where we can produce attractive returns with a high probability of success.”
Meanwhile, NDB Capitals Holdings PLC coming under the NDB has also sold its entirety of 41.56% shares of Aviva NDB Holdings Lanka Private Limited to AIA.
In total AIA group has acquired 92.3% stake in AVIVA NDB Insurance.
The finality of the sale is subject to regulatory approval and is expected to close before the end of 2012.
