Aviva PLC has announced receipt of a loan to aid its £3.7 billion takeover of peer Direct Line Insurance Group PLC.
Citibank had “successfully completed the syndication of a majority of its commitments” under a facility agreement, Aviva said on Wednesday.
Aviva previously detailed a £1.85 billion loan agreement to satisfy certain requirements of the takeover, which was firmed up last month.
This would see Direct Line investors receive 0.2867 new Aviva shares, 129.7p in cash and up to 5p in dividends per share under the takeover, it said at the time.
Direct Line shares were valued at 275p and a 73.3% premium to their November 27 closing price as a result, when Aviva first tabled an offer.