Aviva closes £1.6bn sale of majority stake in Aviva Singapore

British life insurer Aviva has wrapped up the previously announced SGD 2.7 billion (£1.6 billion) sale of a majority stake in Aviva Singapore to a consortium led by Singapore Life (Singlife).

Aviva Singapore has been renamed Aviva Singlife.

Under the terms of the deal announced in September 2020, Aviva has been paid SGD 2.7 billion of total consideration, which is made up of SGD 2.0 billion of cash and marketable securities, SGD 250 million in vendor finance notes, and a 26% stake in Aviva Singlife.

The British life insurer will use the cash proceeds for reducing its debt.

The sale of the majority stake in Aviva Singapore marks the third transaction for Aviva in 2020. Recently, the UK life insurance company divested its entire stake in Aviva Vita, an Italian life insurance joint venture.

The insurance giant stated: “Aviva continues to work at pace, taking decisive actions on its portfolio to transform the company for the benefit of its shareholders.”