Friday, November 17, 2017

IDBI Federal Life Insurance eyes 100% stake sale

Discussions are continuing for India’s IDBI Federal Life Insurance, a three-way joint venture between IDBI Bank, Federal Bank and Belgian insurer Ageas, in a deal that would potentially lead to a complete exit for all three stakeholders.

People familiar with the matter said that IDBI Federal has already begun the process of hiring investment bankers to manage the proposed 100% stake sale.

One of the sources claimed that the insurer hopes to get a valuation of more than Rs30 billion (US$466 million), including a control premium.

Considering that IDBI Federal has bancassurance partners in IDBI Bank and Federal Bank, the sale is seen as likely to entice significant buyer interest given the customer’s large captive customer base.

Sources also said that the company expects bids from all the major domestic insurers, especially those not promoted by banks.

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