London: British insurer Aviva said it expected to get 381 million pounds ($623.5 million) from reducing its stake in Dutch peer Delta Lloyd, as one analyst said Aviva may cut its Delta stake further in future.
Aviva said on Tuesday that it was selling 25 million Delta Lloyd shares at a price of €17.25 per share. The British group had previously announced its intention to sell the stake on Monday.
The Delta sale, which is part of Aviva’s plans to focus more on its core markets in future, will cut Aviva’s shareholding in the Dutch group to 43% from 58%.
Delta Lloyd shares fell sharply as a result of Aviva’s sale. The stock was down 7.1% at €17.65 by 1.20 pm, while Aviva shares fell 1.7%.
“The sale confirms that Delta Lloyd is no longer a strategic stake to Aviva and that a further sale - and thus share overhang -is possible,” KBC Securities analyst Dirk Peeters said in a research note.