Aviva Share Discussion Threads

[jubberjim] 06/12/2024 08:44

Sold out the balance of my Aviva this morning

Will wait to be taken out for my balance of shares in direct line prefer the cash

Good luck

[smurfy2001] 06/12/2024 08:43

So roughy 372m dilution I’m assuming that’s the case. I hope the dividend is maintained.

(Based on 1.3b DL shares).

[muscletrade] 06/12/2024 08:42

Difficult for us to work out the exact benefits of the deal for AV shareholders although it would seem that the market quite likes it.
Worth noting that in 2020 DL share price was 350p and in 2022 300p before they lost the plot on repair costs etc.
That misstep is fixable (maybe partly or wholly fixed already), their customer volume is still good while insurance charges have increased significantly.Add in the synergies, cross selling etc...seems pretty good opportunity to me.

[spob] 06/12/2024 08:33

.

Possible Offer = 129.7p cash + 5p divi + (0.2867 x Aviva share price)


Based on 489.3p per Aviva share, this equals 275p per DLG share (49% cash)



This represents a premium of:

o 73.3% to the closing Direct Line share price on 27 November 2024 (being the last closing share price before the offer period commenced); and

o 49.7% to the six month volume-weighted average Direct Line share price to 27 November 2024.

[klotzak] 06/12/2024 08:16

They have overpaid. Compared to a hop, skip and a jump the BOD have just jumped. Lots saying c. 260 was good last night, yet saying 275 is good this morning.
This will pay off eventually, but overpaying just increases that recovery time.

[kiwi2007] 06/12/2024 08:08

tornado126 Dec '24 - 07:21 - 20421 of 20426
0 0 0
Have they got this at somekind of bargain price ?... I am not convinced, but I trust our CEO can squeeze out the top value out of this..

------

Not a particularly good bargain for shareholders but a damn good one for the guys in the boardroom who'll pay themselves topping bonuses for the extra turnover.

(If you don't know who the mark is it's you (and me)).. we'll make pennies and they'll make millions.

[cwa1] 06/12/2024 07:59

As a holder in both companies-like a lot on here-I'm reasonably satisfied with the deal struck. I think it's a fair price for DLG holders but an attractive entry price for Aviva too. The synergies, areas for cost cutting and cross selling will be huge. Plus, have they "bought" back the next CEO when AB steps down? ;-)

Overall reasonably happy with the outcome if it comes to pass and nobody else "muddies the water" with a counter offer(unlikely?).

[bountyhunter] 06/12/2024 07:46

I'll be very happy to receive some AV shares (+cash) for my DLG holding. Just needs rubber stamping now as effectively an agreed offer given that the DLG BoD have said they will recommend to shareholders.

[heialex1] 06/12/2024 07:32

Looks like a good deal. Looking at the 3 year share price this looks like a steal

[tuftymatt] 06/12/2024 07:26

As a holder of both, but more weighted towards AV. I see this as fair and reasonable for both sides.

Good luck all 👍🏻

[cfro] 06/12/2024 07:23

Looks like the major shareholders in DLG did want this deal after all but were waiting out for that increased offer..

275p seems a very fair price and should be a great deal for shareholders in both companies imo.

[tornado12] 06/12/2024 07:21

Have they got this at somekind of bargain price ?... I am not convinced, but I trust our CEO can squeeze out the top value out of this.. Lets see how the market reacts.. GLA

[bargainsniper] 06/12/2024 07:21

Great they have come to an agreement for both AV and DLG share holders

[skinny] 06/12/2024 07:01

Aviva and Direct Line announce that they have reached preliminary agreement on the financial terms of a potential acquisition of the entire share capital of Direct Line by Aviva (the "Proposal").



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



to be delivered as:

o 129.7 pence per Direct Line share in cash, funded through Aviva's internally available cash resources;

o 0.2867 new Aviva shares per Direct Line share; and

o dividend payments of up to 5 pence per Direct Line share in aggregate (the "Permitted Dividend"), to be paid (subject to the approval of the Board of Direct Line) prior to completion.


This represents a premium of:

o 73.3% to the closing Direct Line share price on 27 November 2024 (being the last closing share price before the offer period commenced); and

o 49.7% to the six month volume-weighted average Direct Line share price to 27 November 2024.

[gary1966] 06/12/2024 06:55

Why don’t bidders build their position to just under 30% at market rates prior to making an approach like in the good old days? Aviva could have done this and probably picked the shares up at 160-170p average and then gone hostile if they chose to.

[cyberian] 05/12/2024 23:59

Looks like Aviva are going hostile and will accept whatever the market decides. No problem as there are other alternatives for Aviva to invest and grow.

[t-trader] 05/12/2024 23:59

Aviva Nears Preliminary Deal With Direct Line After Bump

UK insurer said to sweeten offer again after £3.4 billion bid

Direct Line may announce Friday it’s inclined to recommend bid

[skinny] 05/12/2024 18:37

UK insurance group Aviva has raised its offer to buy Direct Line in a move that would value its smaller rival at about £3.4bn, just days after its first approach was rejected.

Aviva is proposing to pay about 261p a share for Direct Line, up from its first offer last week of 250p, which valued the company at £3.3bn, according to people familiar with the situation.

Direct Line and Aviva declined to comment.

[whatsup32] 05/12/2024 18:25

Aviva raises offer also in FT

[tornado12] 05/12/2024 18:12

Insurance giant Aviva plc has increased its offer for Direct Line Insurance Group PLC (LSE:DLG) to £3.4 billion, according to a Bloomberg report citing “people with knowledge of the matter”.

The reported 261p-per-share offer comes a week after Direct Line rejected an initial offer from Aviva valuing the business at £3.3 billion.


Direct Line said the bid was “highly opportunistic and substantially undervalued the company”.

Aviva insisted the initial offer was “a highly attractive proposal with high execution certainty, which also met Aviva's strict financial criteria for acquisitions”.

Direct Line has yet to comment on the reported second offer.

The Financial Times reported that one top Direct Line shareholder would only expect the board to consider an offer above 250p.

Proactive has requested a comment from Direct Line on the reported second offer

[fenners66] 05/12/2024 17:09

1robbob... Don't hold your breath.

[martyre] 05/12/2024 16:33

Aviva Said to Boost Direct Line Takeover Bid to £3.4 Billion https://www.bloomberg.com/news/articles/2024-12-05/aviva-is-said-to-boost-direct-line-takeover-bid-to-3-4-billion

[t-trader] 05/12/2024 16:21

A 2nd bid of around 260p seems quite reasonable and insinuate’s AV. Isn’t going to over pay, as analysts were expecting a 2nd bid of 270p. Judging by the current share price reaction market is happy with this.

Let’s see what happens when it’s official!