New Delhi: IDBI Bank on Thursday said that it has entered into a share purchase agreement to sell up to 27 per cent stake in its joint venture insurance arm, IDBI Federal Life Insurance Company Ltd (IFLI), to JV partners Ageas Insurance International NV and Federal Bank.
In a regulatory filing, IDBI Bank said that it will sell 23 per cent stake to Ageas, and up to 4 per cent stale to Federal Bank.
At present, IDBI Bank holds 48 per cent stake in IFLI. Post completion of the transaction, subject to regulatory approvals, Ageas and Federal Bank's stakes would be at 49 per cent and 30 per cent, respectively, and IDBI Bank stake would be at least 21 per cent.
IDBI Bank said that it expects to receive up to Rs 595.30 crore from the stake sale - Rs 507.10 crore from Ageas and Rs 88.19 crore from the Federal Bank Ltd.
The transaction is expected to be completed by end of Q3 FY 2021, subject to regulatory approvals and satisfaction of the terms and conditions set out in the share purchase agreement.
Ageas Insurance International NV is a European insurance company with operations in Europe and Asia and Federal Bank is a private bank headquartered at Aluva, Kerala.