The Netherlands-based ING said on Wednesday it will exit ING Vysya Life Insurance Company by selling its 26 per cent stake to domestic partner Exide Industries which will also buy another 24% from two other promoters.
Exide Industries at present holds 50% stake in ING Vysya Life Insurance Company Life Insurance Company. Remaining 24% stake is held by other two promoters Hemendra Kothari Group and Enam Group.
Exide proposes to pay about R550 crore for 50% stake, thereby valuing the ING Vysya Life at about R1,100 crore.
"The company has in principle decided to acquire the remaining 50% of the equity capital of ING Vysya Life (26% from ING Group, 16.32% from the Hemendra Kothari Group and 7.68% from the Enam Group) for an aggregate consideration of R550 crore approximately," Exide Industries said in a statement. ING's exit from the Indian life insurance joint venture is part of the previously announced divestment of ING's Asian Insurance and Investment Management businesses, the Dutch banking and insurance company said in a statement.
The process for the remaining businesses is on-going. Any further announcements will be made if and when appropriate, it said. The deal is subject to regulatory approvals, it said, adding, the transaction is expected to close in the first half of 2013.
Exide further said that it will look for a new foreign partner for its life insurance company.
"Post such acquisition Exide has in principle decided to identify and induct a new international player in the life insurance genre to infuse fresh equity into IVL for the company's expansion plans," it said.