LONDON - In a significant move within the insurance industry, Aviva (LON:AV) PLC has successfully secured the approval of Direct Line (LON:DLGD) Insurance Group PLC shareholders for a proposed acquisition. This development follows the agreement reached on December 23, 2024, where Aviva announced its intention to acquire the entire issued and to be issued share capital of Direct Line.
Today, Direct Line reported that the requisite majority of its shareholders voted in favor of both the Scheme of Arrangement at a Court Meeting and the Special Resolution at a General Meeting. The approval is a crucial step in the process that will see Aviva taking over Direct Line through a combination of cash and share offer.
At the Court Meeting, an overwhelming 99.84% of votes were cast in support of the acquisition, representing 54.86% of eligible shares. The General Meeting saw a similarly high level of support, with 99.85% of votes in favor of the Special Resolution, which includes the amendment of Direct Line’s Articles of Association.
The voting outcomes satisfy conditions 2(a) and 2(b) as outlined in the Scheme Document released on February 10, 2025. The Scheme is still contingent upon the fulfillment or waiver of remaining conditions, including the sanction of the Court at the Court Sanction Hearing and the registration of the Court Order with the Registrar of Companies.
The acquisition remains subject to a timeline that may change depending on various factors, such as the satisfaction of conditions, court approval, and procedural requirements. If the Scheme proceeds as anticipated, applications will be made to delist Direct Line shares from the London Stock Exchange (LON:LSEG) and to remove them from the Official List of the Financial Conduct Authority. The delisting is expected to occur on the business day following the Scheme’s effective date, subject to its finalization.
This article is based on a press release statement from Direct Line Insurance Group PLC.
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