Aviva confirms non-binding proposal submitted to Direct Line

In a notice to the London Stock Exchange, Aviva plc (AVVIY) stated: “In response to press speculation, Aviva announces that on 19 November 2024, it submitted a non-binding proposal to the Board of Direct Line (DIISY) Insurance Group plc regarding a possible offer to acquire 100% of Direct Line. Given Aviva’s desire to reach a swift conclusion and to minimise distraction for both companies, Aviva presented a highly attractive Proposal with high execution certainty, which also met Aviva’s strict financial criteria for acquisitions. Aviva communicated to Direct Line that it believed this Proposal represented a highly compelling offer and that it was designed to encourage prompt engagement to commence the work needed to reach an offer announcement under Rule 2.7 of the Code as soon as possible. Under the terms of this Proposal, Direct Line shareholders would be entitled to receive: 112.5 pence per Direct Line share in cash, funded through Aviva’s internally available cash resources; and 0.282 new Aviva shares per Direct Line share. Based on Aviva’s share price on the day before the Proposal was submitted, being 487.6 pence per Aviva share, the Proposal represents total consideration valued at 250 pence per share.”