The Bank of Baroda has acquired Union Bank’s 21% stake in IndiaFirst Life Insurance Company (IFLlC) for over £766m.
The sale, which involved the transfer of more than 13.93 billion shares at £55 each, was in line with insurance regulator IRDAI’s guidelines to reduce its stake in IFLlC to below 10%, Union Bank said on Friday.
As a result of the transaction completed on Thursday, BoB’s stake in IFLIC has increased to 65% while Union Bank of India’s stake has fallen to 9%. The remaining 26% is held by Carmel Point Investments India.
Union Bank, which holds a 25.10% stake in Star Union Dai-ichi Life Insurance Co., received a 30% stake in IndiaFirst after the Andhra Bank merger. To comply with IRDAI guidelines, it had granted existing shareholders an “initial offer right”. BoB said IndiaFirst will continue to have a long-term agency distribution agreement with BOB and UBI.
