Multinational insurance company Aviva Plc (LON:AV) announced on Monday that it has completed the sale of its majority stake holdings in Aviva Singapore.
The company will be renamed “Aviva Singlife Holdings Pte Ltd.” The transaction was completed for a total consideration of $2.7 billion (£15.1 billion). It consists of $2.5 billion in cash and securities, Sgd 250 million vendor finance notes, and 26% stake holdings in Aviva Singlife.
The group said cash revenue from the Singraph transaction will be directed towards reducing the company’s debt, following its third quarter announcement. As the transaction was first confirmed on September 11, 2020, the company’s statement on Monday added:
“This is the third transaction Aviva has ever completed so far this year, following the recent announcement of the sale of its entire shares in Italian life insurance joint venture, Aviva Vita Spa. Aviva continues to work at a pace and takes decisive action in its portfolio to transform the company for the benefit of its shareholders.”
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Following the news, the company’s shares were repetitively repeated at 326.30pa shares 30/11/20 12:20 GMT, up 0.68% or 2.20p. This is shy of the 337.80p post-lockdown high posted last week, with analysts’ target price being roughly 13.5% shortfall of 369.82pa share.
Analysts currently have a consensus purchase rating for stocks, while the MarketBeat community has a 62.94% “outperform” stance. Its inventory appears to be undervalued, with an AP/E ratio comfortably below the financial sector average of 20.91.
