Aviva PLC (LSE:AV.) has announced plans to retire £200 million of irredeemable preference shares through a combination of a tender offer and a shareholder vote on cancellation.
The move follows regulatory changes that will render the shares ineffective as capital from January 2026, prompting Aviva to eliminate what it deems "an inefficient form of funding".
The company is offering a premium to market prices for holders who opt to tender their shares, with Jefferies taking care of business.
A similar process is also being undertaken by Aviva subsidiary General Accident for its preference shares.
"The board believes the transactions represent a fair and compelling proposition for preference shareholders by offering liquidity at a premium to market prices in return for the preference shares," the FTSE 100 company said in a statement on Tuesday.