Canada's Manulife Financial Corp. submitted a bid to acquire a controlling stake in India's IDBI Federal Life Insurance Co. Ltd.., The Economic Times reported Feb. 8, citing "multiple sources close to the deal process."
Eight to nine indicative offers ranging between US$550 million and US$650 million have been submitted, the sources said. Binding offers are due in March and a "definitive deal" is expected by March 31.
Manulife is competing with local insurers such as HDFC Standard Life Insurance Co. Ltd. and Aditya Birla Sun Life Ins Co. Ltd. for the stake, the publication noted.
IDBI Federal Life Insurance had engaged JPMorgan to help it find buyers for the company. IDBI Bank Ltd. holds a 48% stake in IDBI Federal Life, while Federal Bank Ltd. and Belgian insurer Ageas SA/NV own the remaining interest.
The winning bidder will buy a stake of at most 49% in IDBI Federal Life, sources told the publication, based on foreign direct investment restrictions in India's insurance sector.
If successful, the deal will mark Manulife's entry into India.
Manulife and IDBI Federal Life declined to comment on the matter.
