Mr. Jayant Dua, Managing Director and Chief Executive Officer of Birla Sun ...
As per the share sale and purchase agreement executed on Wednesday, Aditya Birla Nuvo Limited (ABNL) will sell approximately 437 million equity shares constituting 23 per cent of the issued and paid-up equity share capital of Birla Sun Life Insurance (BSLI).
After the stake sale, BSLI is expected to be valued at Rs. 7,235 crore.
ABNL and BSLI chairman Kumar Mangalam Birla said, "Financial services is one of our fastest-growing businesses and is among our core businesses”.
Sun Life’s financial president and chief executive officer Dean Connor was ecstatic with the development and stated, “Increasing our ownership position in BSLI... is exactly on strategy and supports our aspirations for Sun Life Asia as one of our four pillars of growth”.
The deal is expected to be formalised by the end of 2015-16 after obtaining the pre-requisite approval from Insurance Regulatory and Development Agency (IRDAI) and Foreign Investment Promotion Board (FIPB).
BSLI is a private life insurance player in India with the new business premium market share of 7.9 per cent.
As per the industry estimates, the Indian insurance sector is valued at US$ 50 billion. Since the sector was opened up earlier this year, a number of foreign players, including French insurance giant Axa, Standard Life and Japanese Nippon, have announced raising their shareholdings in their respective insurance JVs in India.