dpa-AFX/GNA – Aviva plc (AV.L, AV) said on Friday that it agreed to sell its entire shareholding in Aviva Poland to Allianz for a cash consideration of 2.5 billion euros (2.9 billion dollars), valuing the acquired business at 2.7 billion euros.
Aviva said it will now focus on its strongest businesses in the UK, Ireland and Canada.
The divestment of Aviva Poland is the eighth transaction Aviva has announced in the past eight months.
The sale of eight non-core businesses will generate total cash proceeds of 7.5 billion pounds.
Aviva expects to use the increased capital and cash to support its capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders.
The transaction is expected to complete within 12 months.
In a separate press release, Allianz confirmed that it has agreed to purchase the life and non-life insurance operations, as well as pension and asset management business from Aviva Group and acquire each 51 percent stake in Aviva’s life and non-life bancassurance joint ventures with Santander.
On completion, the transaction, worth 2.5 billion euros, is immediately earnings accretive and comprises a purchase price of 2.7 billion euros and a dividend payment of 0.2 billion euros.