India's Karnataka Bank Ltd. will divest an 8.26% stake in Universal Sompo General Insurance Co. Ltd. to Sompo Japan Nipponkoa Insurance Inc. and Dabur Investment Corp. for an undisclosed sum, Moneycontrol.com reported May 14, citing a statement.
Universal Sompo General Insurance is a joint venture of Allahabad Bank, Indian Overseas Bank, Karnataka Bank and Dabur Investment, with Sompo Japan Nipponkoa serving as the overseas partner. The transaction will bring Karnataka Bank's stake in the insurer to 6% from 14.26%; Sompo Japan Nipponkoa's shareholding to 34.61% from 28.42%; and Dabur Investment's stake to 12.81% from 10.74%.
O. N. Singh, chairman of Universal Sompo, said the joint venture obtained additional capital of 1 billion rupees. The rights issue was subscribed only by Sompo Japan Nipponkoa and Dabur Investment, the report said.
The deal is subject to approval from the Insurance Regulatory and Development Authority of India.
As of May 14, US$1 was equivalent to 67.57 Indian rupees.
