UK-based insurance group Aviva is to sell its 50% stake in Lex Vehicle Leasing (LVL) to HBOS, its existing 50:50 joint venture partner in the business, for GBP226.8 million.
Aviva acquired its 50% stake in LVL as part of its acquisition of RAC last year. Under the terms of the LVL joint venture agreement, the change of control of RAC provided HBOS with the right to acquire Aviva’s 50% interest in LVL. As announced by Aviva on October 11, 2005, HBOS chose to exercise this right.
The sale of LVL is expected to complete by May 31, 2006. HBOS will then take full ownership of this market-leading vehicle leasing business, which currently manages 175,000 vehicles.