INSUBCONTINENT EXCLUSIVE:
suitors who have submitted proposals to acquire a significant stake in IDBI Federal Life Insurance, reviving a transaction that had been
shelved two years ago due to uncertainty over the ownership of the life insurers loss-making parent, IDBI Bank, according to people aware of
the matter.
The three shortlisted bidders have bid for up to 74 per cent stake in the life insurance company
Their proposals value the company between Rs 2,400 crore and Rs 3,000 crore, according to sources.
IDBI Bank owns 48 per cent stake in the
The inclination of the bank is to continue to stay invested in the life insurance business so an outright sale is not on the radar right now
press time Wednesday.
Both Federal Bank and Ageas own 26 per cent stake each in the company and have the right to match the best bid that
IDBI receives, said another person familiar with the deal
IDBI Bank, Federal Bank and Ageas also did not respond to emails seeking comments.
IDBI Bank had appointed investment bank JP Morgan last
year to sell its stake in the company
Ageas has also independently explored selling its stake in the JV over the past year, though it is still unclear if it will exit as part of
They may be open to swapping their shares in the company with a minority stake in another life insurance company, which will allow them to
significant stake in a rival
Two of the three shortlisted bidders are insurance companies and if either of them were to be declared the successful bidder, they would
Corporation of India (LIC) acquired a 51 per cent stake in IDBI Bank in January last year ending uncertainty over the future of the lender
since the change of ownership took place resulting in a significant drop in sales for IDBI Federal Life Insurance, which was largely reliant
prevented suitors to explore a deal
Bharti Axa, Kotak Life and Kedaara Capital were also amongst suitors that had initially expressed interest in the life insurer, ET reported
on November 13.
IDBI Bank is said to have revived its plan to sell its stake in its life insurance JV due to regulatory reasons as LIC is
not permitted to own a stake in another life insurer
LIC exercises indirect control over the JV due to its position as the controlling shareholder of IDBI Bank.
