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IDBI Federal Life Insurance Co. Ltd. is seeking to sell a 100% stake and has started the process of hiring investment banks to manage the sale, Mint reported July 26, citing "two people directly aware of the matter." [...]an IDBI Bank spokesperson said the bank is actively seeking opportunities to...
IDBI Federal Life Insurance Co. Ltd. is seeking to sell a 100% stake and has started the process of hiring investment banks to manage the sale, Mint reported July 26, citing "two people directly aware of the matter."
IDBI Federal Life is a three-way joint venture between India-based IDBI Bank Ltd. and Federal Bank Ltd. and Belgian insurer Ageas SA/NV. The proposed stake sale would see a complete exit of all three stakeholders from the joint venture.
The company is hoping for a valuation of around 30 billion Indian rupees, including a control premium, and expects to attract bids from all major domestic insurers.
Citigroup Inc. and Credit Suisse AG have submitted proposals to manage the stake sale, the people told the news outlet.
IDBI Federal Life and Citibank declined to comment on the matter, while emails sent to Federal Bank and Credit Suisse were not answered, Mint said.
A spokesperson for Ageas said the company does not comment on market rumors, adding that they are in continuous dialogue with partners about the development of their joint ventures.
Meanwhile, an IDBI Bank spokesperson said the bank is actively seeking opportunities to monetize its noncore assets as part of its turnaround strategy, adding that the bank has already identified investments in subsidiaries, associates and joint ventures for this purpose. The spokesperson further said that these transactions are at an advanced stage and will be concluded at the earliest.
In June, IDBI Bank's CEO said that the bank plans to sell about 50 billion rupees of noncore assets in the 2017-2018 fiscal year.
As of July 25, US$1 was equivalent to 64.39 Indian rupees.
Copyright SNL Financial LC Jul 27, 2017