Further to its announcement dated 21 June 2009, Aviva has today completed the sale of Aviva Australia Holdings Ltd, its Australian life and pensions business and wealth management platform (“Aviva Australia”), to National Australia Bank (“NAB”).
The proceeds are expected to be A$925 million (£452 million), comprising A$825 million cash consideration received from NAB, A$40 million representing a dividend received from Aviva Australia, and a forecast amount of A$60 million representing a net asset adjustment to be paid post completion.
The sale supports Aviva’s strategy of focusing on the key growth markets in Asia where leading positions can be achieved. Aviva ranks ninth in the Australian life market and its wealth management platform is ranked eighth. The transaction provides greater financial flexibility, allowing Aviva to redeploy capital to other parts of its business to deliver better returns to shareholders.
As previously announced, Aviva Investors’ Australian operations were not part of the sale. As a global asset management business Aviva Investors remains committed to the Australian market where it is focused on building its external funds under management, benefiting from the growth of the pensions market.
