Aviva has Xmas deadline for DLG offer after both agree prospective £3.6bn deal
Aviva and Direct Line Group have jointly announced that they have reached preliminary agreement on the financial terms of a potential acquisition of the latter by the former.
Based on Aviva’s last closing share price before the offer period started, being 489.3 pence per Aviva share, the proposal represents total consideration valued at 275 pence per Direct Line share, valuing the business at £3.6bn.
DLG initially rejected Aviva’s £3.3bn bid last week, with experts from Peel Hunt have adding there was “scope to sweeten the bid to 260-265p”.
The updated offer is comprised of:
129.7 pence per Direct Line share in cash, funded through Aviva’s internally available cashOnly users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
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