IDBI Bank sells 23% stake in IDBI Federal Life Insurance to Ageas Insurance for ₹507 crore1 min read . Updated: 31 Dec 2020, 08:18 PM IST
- Following the transaction, IDBI Bank's shareholding in IFLI stood at 25% from the earlier 48%, the bank said
IDBI Bank on Thursday said that it has completed sale transaction of its 23% stake in IDBI Federal Life Insurance Company Limited (IFLI) to Ageas Insurance International JV for a consideration of ₹507.10 crore.
"In this connection, we hereby advise that IDBI Bank has completed sale transaction of its 23% stake to Ageas Insurance International JV on 31 December, 2020 pursuant to receipt of the requisite regulatory approvals. Pursuant to sale of 23% holding representing 18,40,00,000 shares to Ageas for a consideration of ₹507.10 crore," the lender said in a regulatory filing.
Following the transaction, IDBI Bank's shareholding in IFLI stood at 25% from the earlier 48%, the bank said.
Now, the joint venture has been rebranded as Ageas Federal Life Insurance Company Limited, the bank said.
Besides, the bank intended to sell 4% stake to another partner Federal Bank.
The board at its meeting held on June 26, 2020, had approved selling IDBI Bank's stake in IFLI to the extent of 23% to Ageas and 4% to Federal Bank at a combined value of about ₹595 crore, subject to all regulatory approvals.
The ₹595 crore raised through this transaction values the life insurer at around ₹2,200 crore which is just a slight premium to the company's book value. Post Life Insurance Corporation India (LIC) acquiring 51 per cent stake in IDBI Bank, the stake sale had become imperative.