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IDBI Bank, on Thursday, said it expects to receive up to ₹595.30 crore from the sale of up to 27 per cent stake in its joint venture arm, IDBI Federal Life Insurance Company Ltd (IFLI).
In this regard, the bank entered into a Share Purchase Agreement (SPA) with Ageas Insurance International NV (buyer) and Federal Bank (buyer) on August 5, whereby it has agreed to sell up to 27 per cent stake in IFLI to the buyers.
The transaction is expected to be completed by the end of Q3 (October-December) FY 2021, subject to regulatory approvals and satisfaction of the terms and conditions set out in the SPA, the bank said in a regulatory filing.
Ageas Insurance and Federal Bank are IDBI Bank’s existing JV partners in IFLI.
As per the said agreement, while 23 per cent stake would be sold to Ageas, Federal Bank would acquire up to 4 per cent stake in IFLI from IDBI Bank. The transaction would be concluded subject to regulatory approvals.
For 23 per cent stake sale to Ageas, the bank will receive ₹507.10 crore. For up to 4 per cent stake sale to Federal Bank, IDBI Bank will receive up to ₹88.19 crore.
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