ABNL will hold the controlling stake in the insurance joint venture with 51% stake
Mumbai: Aditya Birla Nuvo Ltd (ABNL) on Monday announced the completion of the transaction that increased Canada-based Sun Life Financial’s stake in ABNL’s insurance joint venture, Birla Sun Life Insurance, from 26% to 49%.
ABNL will hold the controlling stake in the insurance joint venture with 51% stake, the company said in a release.
Sun Life paid ABNL Rs.1,664 crore for the 23% additional stake, valuing Birla Sun Life Insurance at Rs.7,235 crore.
ABNL sold close to 437 million shares constituting 23% of the issued and paid up equity share capital of Birla Sun Life Insurance to Sun Life Financial, the release said.
ABNL said the proceeds from the stake sale will help the company reduce its debt substantially. The deal, coupled with free cash flow generation from various divisions, will strengthen ABNL to support its growth plans, the company release said.
Birla Sun Life Insurance, with a market share of 6.9% for the nine months ended 31 December 2015, managed assets worth Rs.30,421 crore at the end of December.
The insurer presently has at least 1.6 million policy holders.