AXA sells 51% stake to BoI in AMC venture: Sources

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Insurance major AXA, which has a 26% equity stake in Bharti AXA Life Insurance has sold 51% stake to Bank of India in asset management company venture, reports CNBC-TV18 quoting sources. It is learnt that AXA will compensate BoI for recognising brand value.

E&Y is the advisor for BoI, sources add. Although Axa holds only a 26% stake, it has the management control of the company in India.

The number of branches of Bharti Axa Life has been capped at around 200. The group is bullish on its growth prospects in Asia and is targeting to double its new business income level of 2008 by 2012.

Axa is present in the life insurance space in many Asian countries including India, Thailand, China, Malaysia, Indonesia, Singapore and Hong Kong either through joint ventures or wholly-owned subsidiaries.

In India, the company is trying to mobilise the distribution network and customer base of Bharti to fuel its business growth.