MetLife to up stake in insurance JV from 26% to 49%

After the government passed legislation to allow foreign insurers to increase their stake in Indian insurance companies up to 49 percent, MetLife will up its stake in the PNB MetLife joint venture to the maximum allowed threshold.

Sources have told CNBC-TV18’s Kritika Saxena that the company will buy out the stakes of Shapoorji Pallonji (15 percent), J&K Bank (5.3 percent) and a few other small investors.

Apart from MetLife’s 26 percent stake, the other co-promoter, PNB, holds 30 percent in the venture.

While MetLife, PNB and Shapoorji Pallonji did not comment on the report, J&K Bank chairman Mushtaq Ahmad confirmed to CNBC-TV18 that it had started the process to sell its stake and that MetLife had the right of first refusal on the stake sale and may be the likely buyer.