Aviva 2005 Annual Report Download - page 112

Financial statements continued
Notes to the consolidated financial statements continued
3 – Subsidiaries continued
(ii) Other
In July 2005, the Group completed the sale of the business and certain operational assets and liabilities of Hyundai Cars (UK), which was
acquired as part of the RAC group, to Hyundai Motor UK Limited for a total of £70 million. This sale did not give rise to any gain or loss.
In December 2005, the Group sold its commercial fleet business in Lex Transfleet Limited to Fraikin Limited for a total of £69 million, of
which £10 million is deferred consideration. The Group acquired 50% of Lex Transfleet Limited with the RAC group, and this company
became a wholly-owned subsidiary after the Group acquired the remaining 50% of its share capital in November 2005. The sale resulted
in a gain of £5 million.
No other disposal is considered material for further disclosure.
(c) Operations classified as held for sale
The assets and liabilities of operations classified as held for sale as at 31 December 2005 were as follows:
2005 2004
£m £m
Intangible assets 9–
Investments and property and equipment 320 –
Receivables and other financial assets 68 –
Deferred acquisition costs and other assets 40 –
Cash and cash equivalents 25 –
Total assets 462 –
Payables and financial liabilities (96)
Other liabilities (49) –
Total liabilities (145) –
Net assets 317 –
In October 2005, the Group announced its decision to sell its 50% stake in Lex Vehicle Leasing (Holdings) Limited (LVL), a joint venture
with HBOS, as a result of HBOS exercising an option under the JV shareholders agreement. LVL provides vehicle leasing, supply,
management, maintenance and incident support for companies who outsource the day-to-day operations of their fleets, and was
acquired as a part of the Group’s acquisition of RAC. Completion of the sale of the investment in LVL is expected in the second quarter of
2006 and so the relevant assets and liabilities have been classified as Held for Sale in the consolidated balance sheet.
At year end, the Group held for sale certain divisions of Manufacturer Support Services (MSS), part of the RAC group. The decision to sell
is part of the Group’s wider strategy to integrate RAC and exit non-core operations. The divisions being sold primarily comprise
Lex Transfleet Limited, Multipart Holdings Limited and Lex Commercials Limited, both wholly-owned subsidiaries, and Hyundai Car
Finance Limited, an associate in which the Group holds 49.99%. Lex Transfleet is a provider of complex fleet solutions, Multipart Holdings
provides logistics and aftermarket services to the automotive sector and Lex Commercials is a leading UK commercial vehicles dealership
group, while Hyundai Car Finance Limited provides vehicle instalment finance and leasing. The disposal groups have also been treated as
Held for Sale and are expected to be sold by the second quarter of 2006.
Aviva plc 2005 Financial statements
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