Aviva closes IPO of AvivaSA

RNS Number : 5619W

Aviva PLC

10 November 2014

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR IN THE UNITED STATES, CANADA, JAPAN OR ANY OTHER JURISDICTION IN VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

10 November 2014

AVIVA ANNOUNCES CLOSING OF THE INITIAL PUBLIC OFFERING OF AVIVASA AND EXTENSION OF BANCASSURANCE AGREEMENT WITH AKBANK

·     AvivaSA is expected to be listed as "AVISA" on Istanbul Stock Exchange from 13 November 2014

·     Final price is TL 47 per lot of 100 shares, in the top quartile of the initial price range, valuing the company at TL 1.68 bn

·     Pricing represents an implied multiple of 18x AvivaSA's historical net income[1]

·     AvivaSA's 15-year exclusive distribution agreement with Akbank extended until 2029

Aviva plc ("Aviva") announces the closing of the initial public offering of ordinary shares of its joint venture AvivaSA Emeklilik ve Hayat A.S. ("AvivaSA"). The company is expected to be listed as "AVISA" on Borsa İstanbul from 13 November 2014. The final price is TL 47 per lot of 100 shares, in the top quartile of the initial price range of TL 41-49, valuing the company at TL 1.68 bn. The pricing represents an implied multiple of 18x AvivaSA's historical net income[2].

Aviva announced in September 2014 its intention to offer to the public market a minority stake in AvivaSA, one of Turkey's largest private life and pensions providers.

Separately, AvivaSA and Akbank agreed to extend their exclusive bancassurance agreement for another seven years, until 2029. Akbank will continue to sell AvivaSA's life and pensions products on an exclusive basis through its leading banking network in Turkey. 

The listing and settlement of the initial public offering is subject to customary legal and regulatory requirements.

David McMillan, Chief Executive Officer Aviva Europe, said:

"Turkey is an extremely attractive market to Aviva, with excellent growth prospects. We have a strong position in life and pensions and a long successful relationship with Sabancı. 

"I'm delighted that we extended our distribution agreement with Akbank to 2029."

-ends-

Enquiries:

Media

Andrew Reid                                                                           [phone]

Yasmin Saleh                                                                          [phone]

Analysts

Colin Simpson                                                                        [phone]

David Elliot                                                                              [phone]

Notes to editors:

About AvivaSA

·     AvivaSA provides life insurance, pensions and personal accident products to over two million customers across Turkey.

·     It is the second-largest provider of private pensions in Turkey and the market leader in corporate pensions, with 18.9% market share by assets under management

·     AvivaSA is also a leading player in the life protection sector in Turkey with a 7.4% market share by gross written premiums (GWP) and the second largest provider of life personal accident products in the country with a 20.6% market share by GWP.

·     In addition to its long term exclusive bancassurance agreement with Akbank, AvivaSA also has a diversified and wide reaching distribution network including a leading corporate sales team, a broad network of dedicated agents and a large employed direct sales force team, the largest in the country.

About Aviva

·     Aviva provides 31 million customers with insurance, savings and investment products.

·     We are one of the UK's leading insurers and one of Europe's leading providers of life and general insurance.

·     We combine strong life insurance, general insurance and asset management businesses under one powerful brand.

·     We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.

·     The Aviva media centre at www.aviva.com/media/ includes images, company and product information and a news release archive

·     For an interactive introduction to what we do and how we do it, please click here http://www.aviva.com/library/reports/this-is-aviva/

·     For broadcast-standard video, please visit http://www.aviva.com/media/video/ 

·     Follow us on twitter: www.twitter.com/avivaplc/ 

These materials are not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Canada or Japan or any (other) jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

These materials are for information purposes only and are not intended to constitute, and should not be construed as, an offer to sell or a solicitation of any offer to buy any securities of AvivaSA Emeklilik ve Hayat A.Ş. (the Company, and such securities, the Securities) in the United States, Canada or Japan or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction.

The Securities are not and will not be registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act) and will also not be registered with any authority competent with respect to securities in any state or other jurisdiction of the United States of America. The Securities may not be offered or sold in the United States of America absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act. There will be no public offering of Securities in the United States. Any securities sold in the United States will be sold only to "qualified institutional buyers" (as defined in Rule 144A under the U.S. Securities Act).

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, "qualified investors" (as defined in section 86(7) of the Financial Services and Markets Act 2000) and who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order (all such persons together being referred to as "relevant persons").  Persons who are not relevant persons should not take any action on the basis of this document and should not act or rely on it. 

In Australia this document is for distribution only to professional or sophisticated investors (i.e. those persons to whom offers can be made without a disclosure document, in accordance with sections 708(8) and (11) of the Corporations Act 2001 (Cth)) who are "wholesale clients" within the meaning of section 761G of the Corporations Act 2001 (Cth).  The entity receiving this document represents and warrants that if it is in Australia it is a wholesale client and either a professional or sophisticated investor and that it will not distribute this report to any person outside Australia.  This document is not supplied in connection with any offering of securities in the Company.  A decision whether to subscribe for the Company's securities should be made on the basis of the information in the disclosure document which will be issued by the Company.

The Company has not authorised any offer to the public of Securities in any Member State of the European Economic Area. With respect to any Member State of the European Economic Area which has implemented the Prospectus Directive (each a Relevant Member State), no action has been undertaken or will be undertaken to make an offer to the public of Securities requiring publication of a prospectus in any Relevant Member State. As a result, the Securities may only be offered in Relevant Member States (i) to any legal entity which is a qualified investor as defined in the Prospectus Directive; or (ii) in any other circumstances falling within Article 3(2) of the Prospectus Directive. For the purpose of this paragraph, the expression "offer of securities to the public" means the communication in any form and by any means of sufficient information on the terms of the offer and the Securities to be offered so as to enable the investor to decide to exercise, purchase or subscribe for the securities, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression "Prospectus Directive" means Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State.

No action has been taken by the Company that would permit an offer of Securities or the possession or distribution of these materials or any other offering or publicity material relating to such Securities in any jurisdiction where action for that purpose is required.

The release, publication or distribution of these materials in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which they are released, published or distributed, should inform themselves about, and observe, such restrictions.

An offer to acquire Securities pursuant to the proposed offering will be made, and any investor should make his investment, solely on the basis of information that will be contained in the prospectus to be made generally available in Turkey in connection with such offering. When made generally available, copies of the prospectus may be obtained at no cost from the Company or through the website of the Company.

Citigroup Global Markets Limited and HSBC act exclusively for the Company and no-one else in connection with any offering of Securities and will not be responsible to anyone other than the Company for providing the protections afforded to the customers of Citigroup Global Markets Limited and HSBC or for providing advice in relation to any offering or any transaction or arrangement referred to herein

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[1] Based on 9M 2014 IFRS net income of TL69m, annualised

[2] Based on 9M 2014 IFRS net income of TL69m, annualised

 

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