LONDON (dpa-AFX) - Aviva plc (AV.L, AV) said Tuesday that it agreed to sell its French business to Aéma Groupe for 3.2 billion euros.
The transaction covers the French life, general insurance, and asset management businesses and the (75%) shareholding in UFF5 collectively called as 'Aviva France'.
As part of the transaction with Aéma Groupe, Aviva has agreed to customary warranties and indemnities.
Aviva said it expects to use increased capital and cash to support its previously communicated capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders.
The company will use part of the cash proceeds--up to 0.5 billion pounds-- to accelerate repayment of some of the Group's internal loan with Aviva Insurance Limited.
The transaction is expected to complete by the end of 2021.
Copyright RTT News/dpa-AFX