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Canadian insurance major Sun Life will invest ₹1,664 crore to increase its stake in Birla Sun Life Insurance (BSLI) to 49 per cent from 26 per cent.
Aditya Birla Nuvo Ltd (ABNL) has entered into an agreement with the Canadian insurance major Sun Life to sell about 437 million equity shares constituting 23 per cent of the issued and paid-up equity share capital of BSLI.
On completion of the transaction, Sun Life’s stake in BSLI will increase to 49 per cent while ABNL will continue to hold a controlling 51 per cent stake.
The 23 per cent stake sale will fetch ABNL ₹1,664 crore, valuing BSLI at ₹7,235 crore.
Kumar Mangalam Birla, Chairman, Aditya Birla Nuvo and BSLI, said, “Financial Services is one of our fastest growing businesses and is among our core businesses... Both Sun Life and ABNL have closely partnered in building the life insurance business to its current scale, investing heavily in both capital and resources.”
BSLI is one of the leading private life insurance players in India, with the new business premium market share of 7.9 per cent for the half year ended September 30, 2015.
Dean Connor, President and Chief Executive Officer, Sun Life Financial, said increasing the stake in Birla Sun Life was exactly on strategy and supported the company’s aspirations for Sun Life Asia.
The transaction is expected to close by the end of FY2015-16, subject to the customary closing conditions and the requisite statutory and regulatory approvals in India and Canada.
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