Delta Lloyd Rises Most in Year on Stake Sale: Amsterdam MoverFred Pals
Delta Lloyd NV, the Dutch insurer which sells life insurance in Belgium, the Netherlands and Luxembourg, rose the most in more than a year after Aviva Plc sold its 19.4 percent stake in the company for 433.8 million euros ($568 million).
Delta Lloyd rose as much as 9.5 percent to 14.09 euros, the biggest intraday gain since September 2011. It traded at 13.80 euros as of 9:59 a.m. in Amsterdam, valuing the company at 2.4 billion euros.
“The overhang was a concern so removal thereof is a clear positive,” Albert Ploegh, an Amsterdam-based analyst at ING Groep NV with a buy rating on the shares, said in a note today.
Aviva, the U.K’s second-biggest insurance company by market value, sold 34.3 million shares of the Amsterdam-based insurer in a stock offering for 12.65 euros each. The ordinary shares will be placed with various institutional investors, Delta LLoyd said in a statement yesterday.
“We are pleased with this successful reallocation of shares, showing a particular strong interest of long-term investors reflecting their trust in Delta Lloyd,” Chief Executive Officer Niek Hoek said. “It strengthens us pursuing our strategy and enables us to retain a stable shareholder base.”