IDBI Bank Ltd. has decided to sell its remaining 25% stake in its insurance joint venture to Ageas Insurance International NV.
The bank's board decided to sell 20 crore shares in Ageas Federal Life Insurance Co. (formerly IDBI Federal Life Insurance Co.) to the Belgian company, according to its exchange filing on Tuesday.
Earlier, the bank had sold 23% to Ageas, following which the insurer's name was changed from IDBI Federal Life Insurance to Ageas Federal Life Insurance.
After the latest transaction, Ageas will own 74% of the insurance company and the Federal Bank Ltd. will hold the remaining 26% stake.
As of March 31, 2021, investment in the insurer constituted 0.69% of the total consolidated net assets of IDBI Bank.
Details of the proposed sale, the call option conditions and price have not been disclosed yet. BloombergQuint's emailed queries to the insurer about the terms remained unanswered.
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