Aviva plc (LON: AV) said on Friday that it plans on withdrawing from Aviva Poland. The company announced a deal with Allianz SE to offload its entire stake in the Polish unit for £2.14 billion.
Allianz SE (ETR: ALV) closed the regular session at £182.19 per share on Friday. In comparison, the stock had started the year at a per-share price of £170 after recovering from a low of £115.30 per share in March 2020.
The Polish unit is currently worth £2.31 billion
The European multinational financial services company said that it will also buy Banco Santander’s minority stake in Aviva Poland. The polish unit is currently worth £2.31 billion.
The agreement between the two companies is likely to close by March 2022 after receiving approvals from the regulatory and anti-trust authorities. The announcement on Friday marks Aviva plc’s eighth divestment of a noncore business since its announcement that it wanted to refocus its portfolio last year. In total, selling eight businesses, Aviva plc will generate a total of £7.5 billion in cash proceeds.
The FTSE 100 listed company also highlighted on Friday that it plans on using this cash for investments directed at long-term growth and to reduce debt. The excess capital, it added, will be returned to shareholders.
In separate news from the United Kingdom, luxury fashion house Burberry Group plc lost a Chinese brand ambassador as a backlash to Western accusations of abuses in Xinjiang.
CEO Amanda Blanc’s comments on Friday
Chief Executive Amanda Blanc of Aviva plc commented on the news on Friday and said:
“Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading
