AIA completes $109m buy of Aviva NDB Insurance

Thursday, 6 December 2012 01:26 - - {{hitsCtrl.values.hits}}

AIA Group Ltd. (AIA) yesterday closed its acquisition of AVIVA NDB Insurance (ANI) with an investment of US$ 109 million or over Rs. 14 billion.

AIA is the world’s fifth largest insurance group by market capitalisation. AIA has acquired 92.3% stake in ANI for a total consideration of US$109 million, making Sri Lanka its 16th market.

AIA acquired the entire stake in AVIVA NDB Holdings Lanka Ltd., from Aviva Asia Holdings Ltd., and NDB Capital Holdings PLC. AVIVA NDB Holdings Lanka Ltd., held a direct shareholding of 87.27% in AVIVA NDB Insurance PLC.

AIA also acquired the 5% direct shareholding in AVIVA NDB held by NDB Capital Holdings PLC. Through this transaction, AIA’s total shareholding in ANI amounted to 92.3%.

AIA ranked fifth in the world by market capitalisation with a market value of US$47 billion as of 24 November 2012.

Shah Rouf, Managing Director of AVIVA NDB Insurance, said: “We are delighted that this transaction has closed and we are now part of AIA, one of the strongest and largest insurance companies in the world. Our company is already number two in the market in Sri Lanka, and we look forward to building on this position and serving an increasing customer base as part of AIA.”

The Colombo Stock Exchange was informed of the conclusion of the AIA acquisition. ANI will be renamed and rebranded as AIA in early 2013.