Nearly five months after the amalgamation of Andhra Bank that also brought along a 30% stake in IndiaFirst Life Insurance Company (IFLIC), Union Bank of India has kickstarted the process of divesting the holding in the insurer. This follows regulatory limits on promoter holding in multiple insurance firms. On Wednesday, Union Bank of India floated an expression of interest (EoI) for the sale. The bank holds 25.1% in Star Union Dai-ichi Life Insurance Co. With the Andhra Bank amalgamation on April 1, Union Bank obtained its holding in IFLIC. Bank of Baroda and Carmel Point Investments hold 44% and 26%, respectively, in IFLIC. According to the EoI document, the life insurer commenced operations 12 years ago and in 2019-20, had total premium of ₹3,360 crore.According to the EoI, Union Bank of India intends to divest up to 19,90,38,462 equity shares of face value of ₹10 each constituting up to 30% of the paid-up capital of IFLIC. Fixing September 9 as the deadline for submitting the response, the EOI said prospective investors should spell out their rationale behind acquiring the stake, overall approach to the investment, strategy for growth and development of IFLIC. Details on how the transaction is to be funded also need to be furnished. Ernst & Young (EY) will be the adviser for the transaction.
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