Dutch banking major ING on Wednesday agreed to sell its 26 per cent equity stake in ING Vysya Life Insurance Company Ltd to its joint venture partner Exide Industries Ltd, belonging to the Rajan Raheja group.
“ING’s exit from the Indian life insurance joint venture is part of the previously announced intended divestment of ING’s Asian Insurance and Investment Management businesses. The process for the remaining businesses is on-going. Any further announcements will be made if and when appropriate,” ING said.
Exide currently owns 50 per cent stake in the insurance JV. The transaction announced on Wednesday is not expected to have a material impact on ING Group results.
Subject to regulatory approvals, the transaction is expected to close in the first half of 2013. The agreement does not impact ING Vysya Bank, a publicly listed Indian bank in which ING has a 44 per cent stake, nor ING’s fund management business in the country, it said.
ING Vysya Life Insurance has over a decade of experience serving more than one million customers in over 200 cities in India. Headquartered in Bangalore, the insurer distributes its products through more than 30,000 advisors, bancassurance partner ING Vysya Bank, referral partners, corporate agents and brokers.
Exide Industries is the country’s largest producer of automotive and industrial batteries. Exide Industries has been a shareholder of ING Vysya Life Insurance since 2005.