Lawstreet Journal

IDBI Executes Agreement to Sell 27% Stake in IFLI to its joint venture partners – Ageas Insurance International and Federal Bank

Lawstreet Journal 8 Aug 2020 8:17pm

Image courtesy: Lawstreet Journal Business IDBI Executes Agreement to Sell 27% Stake in IFLI to its joint venture partners – Ageas Insurance International and Federal Bank

IDBI Bank has executed a pact to sell up to 27 percent of its stake in IDBI Federal Life Insurance (IFLI) to its joint venture partners – Ageas Insurance International and Federal Bank. It is said that it expects to receive up to ₹595.30 crores from the sale.

At present, IDBI Bank holds a 48 percent stake in IFLI.

“Post completion of the transaction, subject to regulatory approvals, Ageas and Federal Bank stake would be at 49 percent and up to 30 percent, respectively, in IFLI and IDBI Bank stake would be at least 21 percent in IFLI,” IDBI Bank said in a statement on August 6.

According to the agreement, a 23 percent stake would be sold to Ageas, Federal Bank would acquire up to 4 percent stake in IFLI from IDBI Bank. For 23 percent stake sale to Ageas, the bank will receive ₹507.10 crores. For up to 4 percent stake sale to Federal Bank, IDBI Bank will receive up to ₹88.19 crores. The transaction would be concluded subject to regulatory approvals.

The transaction is expected to be completed by the end of October-December, Financial Year 2021, dependent on the regulatory approvals and satisfaction of the terms and conditions set out in the SPA, the bank said in a regulatory filing.

IDBI Federal Life Insurance received its license from IRDAI in December 2007 and started operations in 2008. It reported a 22 percent increase in its net profit to ₹162 crores in 2019-20.

 

Continue Reading...

Tagged: IDBI  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com