BoB acquires Union Bank’s 21% stake in IndiaFirst Life for ₹766 cr. 

HYDERABAD

Bank of Baroda has acquired Union Bank’s 21% stake in IndiaFirst Life Insurance Company (IFLlC) for more than ₹766 crore.

The divestment, involving transfer of more than 13.93 crore shares at ₹55 each, was in line with insurance regulator IRDAI’s directives to bring down stake in IFLlC to below 10%, Union Bank said on Friday.

Consequent to the transaction that was completed on Thursday, BoB’s stake in IFLIC has increased to 65%, while Union Bank of India’s share reduced to 9%. The remaining 26% is held by Carmel Point Investments India.

Union Bank, which holds 25.10% stake in Star Union Dai-ichi Life Insurance Co., got a 30% stake in IndiaFirst after the amalgamation of Andhra Bank. Towards complying with IRDAI directives, it had made a ‘Right of First Offer’ to the existing shareholders. BoB said IndiaFirst will continue to have a long-term agency distribution agreement with both BOB and UBI.