IDBI Bank to sell 27% in insurance JV, Belgian firm raises stake to 49%

Ageas Insurance will hold 49 per cent in the venture while Federal Bank will have 30 per cent stake, with IDBI Bank holding the remaining 21 per cent stake in the insurance firm, after the stake sale.

IDBI Bank has decided to sell 27 per cent of its stake in IDBI Federal Life Insurance to Belgian insurance company Ageas Insurance and Federal Bank for Rs 595 crore. Ageas will acquire 23 per cent stake, while Federal Bank will buy 4 per cent.

Ageas Insurance will hold 49 per cent in the venture while Federal Bank will have 30 per cent stake, with IDBI Bank holding the remaining 21 per cent stake in the insurance firm, after the stake sale. IDBI Bank has 48 per cent stake in the insurer, while Federal Bank and Ageas Insurance have 26 per cent each. As LIC had acquired a 51 per cent stake in IDBI Bank, the stake sale of IDBI Bank’s insurance venture was a regulatory requirement.

Source

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