M&A

M&A

Union Bank sells 21% stake in life insurance arm to JV partner BoB for Rs.766-Cr

BSE Announcement   The Hindu  

Bank of Baroda has acquired Union Bank's 21% stake in IndiaFirst Life Insurance Company (IFLlC) for more than INR 766 crore. The divestment, involving transfer of more than 13.93 crore shares at INR 55 each, was in line with insurance regulator IRDAI's directives to bring down Union Bank's stake in IFLlC to below 10%. (The seller - Union Bank - also holds 25.10% stake in Star Union Dai-ichi Life Insurance Co, - had received a 30% stake in IndiaFirst upon the amalgamation of Andhra Bank into it.) Consequent to the transaction, BoB's stake in IFLIC has increased to 65%, while Union Bank of India's share has reduced to 9%. The remaining 26% is held by Carmel Point Investments India.