RSS Aviva, Direct Line Agree On Terms Of Recommended Cash And Share Offer For Direct Line

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 RSS Aviva, Direct Line Agree On Terms Of Recommended Cash And Share Offer For Direct Line

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Aviva (AV.L, AV) and Direct Line Insurance (DLG.L) have come to terms on a recommended offer involving both cash and shares for the acquisition of Direct Line. Under the terms of this agreement, Direct Line shareholders will receive for each share they hold: 0.2867 new shares in Aviva, a cash payment of 129.7 pence, and up to 5 pence in dividend payments to be distributed before the deal is finalized. This offer effectively values each Direct Line share at 275 pence, setting the total valuation of Direct Line's entire share capital at approximately 3.7 billion pounds.

Post-completion, Aviva's shareholder base is expected to comprise about 87.5 percent Aviva owners, with Direct Line shareholders holding around 12.5 percent of the enlarged share capital of Aviva.

The material has been provided by InstaForex Company - www.instaforex.com
 
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