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Feb 13, 2018 01:27 PM IST | Source: Moneycontrol.com

Max Life favourite to acquire IDBI Federal Life Insurance

People aware of the development told the newspaper on the condition of anonymity that Max is possibly looking to buy out 51 percent stake in the firm.

 
 
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Max Life Insurance Co. Ltd has emerged as the leading contender to acquire or pick up a substantial stake in IDBI Federal Life Insurance Co. Ltd, according to a report in Mint.

IDBI Federal Life has been on the block for some time and IDBI Bank ,which holds 48 percent stake in the insurance company, has decided to sell its stake in an effort to raise capital by selling non-core assets.

People aware of the development told the newspaper on the condition of anonymity that Max is possibly looking to buy out 51 percent stake in the firm.

Earlier, Max Life’s proposed merger with HDFC Standard Life Insurance Co. Ltd was called off after it failed to get regulatory clearance that would have created an insurance behemoth with total assets of Rs 1.1 trillion.

Currently, IDBI Bank holds a 48 percent stake in IDBI Federal Life whereas Federal Bank Ltd and Belgian life insurer Ageas SA/NV hold 26 percent each.

The spokesperson for IDBI Federal Life said that it does not comment on speculation, while Max Life declined to comment on email query from Mint.

The other insurance companies who have shown interest in buying out IDBI Federal Life Insurance include Aditya Birla Sun Life Insurance Co. Ltd, Exide Life Insurance Co. Ltd, Kotak Mahindra Life Insurance Co. Ltd and Tata AIA Life Insurance Co. Ltd.

The valuation of IDBI Federal Life Insurance has been pegged at Rs 6,000 crore and has an embedded value of around Rs 2,000 crore.
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