 0 March 2025
RECOMMENDED CASH AND SHARE OFFER
For DIRECT LINE INSURANCE GROUP PLC ("DIRECT LINE")
BY AVIVA PLC ("AVIVA")
to be effected by means of a Scheme of Arrangement
under Part 26 of the Companies Act 2006
Results of Court Meeting and General Meeting
On 23 December 2024, the boards of directors of Aviva and Direct Line announced that they had reached agreement on the terms of a recommended cash and share offer for the entire issued and to be issued share capital of Direct Line (the "Acquisition"), to be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme"). On 10 February 2025, Direct Line published a scheme document in connection with the Acquisition, setting out the terms and conditions of the Scheme (the "Scheme Document").
Direct Line is pleased to announce that at the Court Meeting and General Meeting held earlier today in connection with the Acquisition:
(A) the requisite majority of Scheme Shareholders voted in favour of the resolution to approve the Scheme at the Court Meeting; and
(B) the requisite majority of Direct Line Shareholders voted in favour of the Special Resolution to implement the Scheme, including the amendment of Direct Line's Articles of Association at the General Meeting.
Details of the resolutions passed are set out in the notices of the Court Meeting and the General Meeting contained in Parts IX and X of the Scheme Document, respectively.
Capitalised terms used in this announcement shall, unless otherwise defined, have the meanings as set out in the Scheme Document. |
One to watch, the EGM to approve the take-over is tomorrow:
'Notices convening the Court Meeting and the General Meeting to be held at Riverbank House, 2 Swan Lane, London, EC4R 3AD at 11.00 a.m. and 11.15 a.m. (or as soon thereafter as the Court Meeting concludes or is adjourned) on 10 March 2025, respectively, are set out in the Scheme Document.' |
Well thats another policy theyve just lost!!!! |
I assume the nasties are now out (they may even have stashed a bit in reserves under instruction from Aviva) but the company is a different prospect for Aviva as they should be able to cut at least 5% off the expenses for the additional business and they should also be able to improve revenue and performance in the non-motor side of DLG as Aviva are more expert in that arena. Just because DLG could not make a decent return does not mean Aviva cannot with their scale and greater knowledge in some parts of the market. |
I wonder what Aviva will do differently to make dlg work for them, or will they have to write off quite a bit to steady the ship /stop it sinking ?I sold out at 275 last week and moved to Aberdeen, phnx, mng and glen.Thought about buying some av. but the share price seems ahead of itself just at the moment. |
It seems selling the company was a good move. The results still hide some nasties. Under no circumstances should a company have to strengthen prior year reserves on non-motor which is heavily short tail. It implies they had remaining black holes which they must have known about. This also applies, to some extent, to the motor reserves. If, as they imply, they had not already assumed the benefit from the change in the Ogden discount rate then the prior year release from motor should have been bigger. They obviously offset the Ogden benefit by further strengthening of underlying motor reserves. Unfortunately the senior management of DLG, including those brought in a couple of years ago, will walk away rich. They do not deserve it and no reputable insurer should look at them for senior appointments. They continued to mislead the market on their reserves. |
Yes I'm tempted and will probably sell tomorrow, unless better informed posters dissuade me.
The current Aviva price values the bid at 285p - but Aviva went up by over 8% last week (and deservedly so) but I hold too many Aviva for comfort, so see selling DLG as a way of tempering that a bit. |
Anyone tempted to take the circa 280 on offer here??
I am considering all the talk was around 275 and there always remains a small chance it may not happen.
Good luck all 👍🏻 |
'2024 Results Announcement - presentation starts at 0900hrs
Aviva plc
hxxps://www.aviva.com › 2024-full-year-results
We announce our full year results on 27 February 2025 at 0700hrs GMT. You'll be able to view our announcement and presentation at 0700hrs and join an update ...' |
nellynell
"give us an idea of the final dividend to be paid before the baby is handed over to aviva"
------------------------------------------------------------------------------------
Last years final Aviva divi was 22.3p. Assuming they pay the same this year that would lower the value of DLG benefits by 6.39p. (22.3 x 0.2867)
The offer allows for a DLG divi of "up to 5p" so I would guess they would pay the max divi of 5p.
That's my take on the maths but would be interested to see what others think.
All IMHO,
NMRN |
@Nelly: '04 Mar 2025 - 2024 preliminary results announcement' [DLG website]
Followed by what Prokart says^ on 10/3 |
Full year results sometime in March aswell which should give us an idea of the final dividend to be paid before the baby is handed over to aviva |
Shareholders meeting on 10th March to approve takeover |
That's laughable considering the exit price that has been known for ages now!!
Good luck all 👍🏻 |
Barclays knock it out the park :-))
*BARCLAYS RAISES DIRECT LINE PRICE TARGET TO 275 (185) PENCE - 'EQUAL WEIGHT' |
Anyone have an approximation of when this is likely to complete? |
never even noticed til now. but never given two kinds what anyone else thinks. fastest way to a mental breakdown is starting to worry about other folks opinions. utter lunacy. no pun intended.
bessent and lutnick will be sent off to mexico during this one months grace. canada still in dog house i suspect may be slightly personal with trudeau but maybe they arrange something in tonights call. |
dislike was removed because it was deemed as having a negative commerical value to advertisers which is their bread and butter. so that will never be coming back. |
Evening NMRN
I think nearly everyone is aware of the person that is responsible for the OCD level of downticking across large swathes of ADVFN. He's been at it for a a very long time now and everyone pretty much just discounts a red thumbs down from every post, thus negating the point of doing it in the first place 🤷a94;️
Sad individual with nothing better to do really |
Good evening all,
I was flicking through some of the previous posts on this thread and noticed an astonishing coincidence.
89 of the last 100 posts have at least 1 thumbs down vote. The remaining 11 posts are the only exceptions and, unbelievably, they were all posted by the same person!
I spoke to a high level mole I know at MI5 and he has given me the posters name but I am unable to tell you for fear of my mole being discovered.
NMRN |
jrphoenix,
Aviva price = £5.10 x 0.2867 = £1.46
Cash per share =£1.297
Value of bid = £2.759
Possible max dividend £0.05
Max bid value (at todays price)£2.809
Obviously if Aviva price changes up or down the total bid value will follow in the same direction but the percentage of the share price (28.67) and the cash element (£1.297) are set in stone.
Hope this helps,
NMRN |
12:44hrs today, from rolling business news/Telegraph - 'Aviva jumped 3.5pc after JP Morgan upgraded its rating of the insurer to “overweight” from “neutral”.'
FWIW my notes from just pre the bid, 27/11/24: DLG was 158.78, Av. was 489.3. If I have all correct that presently implies a bid value of 287p
ps. Link for those who might also now want to keep a weather-eye on Aviva |
At current Aviva price of £5.10, the offer is worth £2.75. |
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