Aviva plc ("Aviva") announces that HBOS plc ("HBOS"), its 50:50 joint venture partner in Lex Vehicle Leasing Limited ("LVL"), has exercised an option under the JV agreement which will lead to Aviva’s disposal of its stake in LVL.
Lex Vehicle Leasing
Aviva plc ("Aviva") announces that HBOS plc ("HBOS"), its 50:50 joint venture partner in Lex Vehicle Leasing Limited ("LVL"), has exercised an option under the JV agreement which will lead to Aviva’s disposal of its stake in LVL.
Aviva acquired the 50% stake in LVL as part of its acquisition of RAC earlier this year, and was aware of HBOS’s rights at the time the acquisition was made. This change of control triggered HBOS’s option.
Aviva and HBOS will now enter into discussions to agree a fair market value for LVL that may or may not lead to the sale of Aviva’s interest in the JV to HBOS.
Aviva’s sale of its stake in the LVL joint venture will have no impact on the cost savings Aviva stated it would achieve as a result of integrating the RAC business into Norwich Union.
Cost savings target to be exceeded
Aviva confirms that it will exceed the cost savings target of Ł80 million per annum forecast at the time of the acquisition and now expects to achieve savings of Ł100 million per annum in 2006.
Aviva will present full details and further news of developments in its general insurance business in a seminar for investors and analysts on 18 October at Park Royal, London.
Speakers will include Patrick Snowball, executive director of Aviva with responsibility for the group’s general insurance portfolio, Andrew Moss, group finance director of Aviva, Mark Hodges, managing director of Norwich Union General Insurance and Simon Machell, managing director of RAC.
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Enquiries:
Media
Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200
Analysts
Charles Barrows, investor relations director +44 (0)20 7662 8115
Nicole Marques, investor relations manager +44 (0)20 7662 8302
Notes to editors:
- LVL is a 50:50 joint venture between RAC and HBOS. LVL provides vehicle leasing, supply, management, maintenance and incident support for companies who outsource the day-to-day operations of their fleets. In 2004 LVL contributed Ł23 million of RAC’s pre-tax earnings* of Ł102 million (*EBITA before group overheads and exceptional items).
- Details of the Aviva general insurance seminar for investors and analysts are as follow:
- Date: Tuesday, 18 October 2005
- Start: 0800 hrs for 0900 hrs (UK time)
- End: 1200 hrs (UK time) followed by lunch
- Venue: Solus House, Park Royal, London
- Contact: jane.sibley@aviva.com or call +44 (0)20 7662 1189 - Aviva is the world’s sixth-largest insurance group based on gross world-wide premiums and market capitalisation (at 31 December 2004); it is one of the leading providers of life and pensions in Europe and has substantial businesses in other markets around the world.
- Aviva’s main activities are long-term savings, fund management and general insurance, with world-wide total income of Ł40 billion and assets under management of Ł280 billion at 31 December 2004.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.