LONDON - Aviva (LON:AV) PLC, the British insurance giant, announced today that it has received overwhelming shareholder approval for its proposal to cancel two sets of cumulative irredeemable preference shares. The decision was made during the company’s recent meetings, where more than 90% of votes cast were in favor of the cancellation.
The resolutions passed include the Advisory Vote Resolution and the Cancellation Resolution, with 91.3% and 97.5% of votes in favor, respectively. Additionally, the Special Dividend Resolution and the Tender Offer Resolution received 99.8% and 99.5% approval. These outcomes indicate strong shareholder support for Aviva’s strategic financial decisions.
The cancellation affects £100 million worth of 8.375% preference shares and another £100 million of 8.750% preference shares. Following the vote, these shares will be canceled, and the registered holders will receive the cancellation amount as outlined in the Tender Offer Memorandum and Shareholder Circular.
The court hearing to confirm the cancellation is scheduled for May 13, 2025, and the last day for trading the affected preference shares is expected to be on the same day. Trading suspension on the London Stock Exchange (LON:LSEG)’s Main Market is anticipated for the following day, with the official cancellation from the listing expected to occur on May 15, 2025.
The expected cancellation date is set for May 14, 2025, with a settlement date of May 22, 2025, when payment of the cancellation amount and any applicable voting fees will be made to the registered holders.
Aviva’s announcement comes after a tender offer initiated on March 11, 2025, inviting eligible holders to tender their preference shares for purchase by Jefferies International Limited for cash. Given the approval of the cancellation, the tender offer will not proceed, and no preference shares will be purchased as per the initial offer.
The company has made it clear that the payment of the cancellation amount and the voting fee (if applicable) to the registered holder will discharge Aviva’s obligations, and beneficial owners must look to the registered holder for payment.
This move is a significant step in Aviva’s capital management strategy, reflecting its commitment to optimizing its capital structure and delivering value to shareholders. The information is based on a press release statement from Aviva PLC.
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