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Asia-Pacific financial institutions M&A interest tracker

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Asia-Pacific financial institutions M&A interest tracker

This tracker covers possible deals reported by media across the Asia-Pacific region over a certain period. The information is gathered from various news sources, excludes confirmed deals and is limited to potential acquisitions or sales involving companies or operations in the region.

Indian banks looking to raise capital led the list of possible deals in November as they shed noncore assets and sold stakes, while the country's insurance sector saw continued interest from investors.

IDBI Bank Ltd. is seeking buyers for its stakes in National Stock Exchange of India Ltd., IDBI Federal Life Insurance Co. Ltd. and IDBI Trusteeship Services Ltd. as part of plans to divest noncore assets.

The bank said Nov. 27 that it will divest a 1.5% stake in NSE. The bank is also looking to sell its stakes in IDBI Federal Life and IDBI Trusteeship Services. It holds 48% and 54.70% stakes in IDBI Federal Life and IDBI Trusteeship Services, respectively. The planned sales are part of the bank's plan to sell 50 billion Indian rupees worth of noncore assets during the 2017-2018 fiscal year in order to boost its capital.

IDBI Federal Life has reportedly engaged JPMorgan to help it find buyers for the company, Business Standard reported Nov. 7. JPMorgan has kicked off the process to find buyers for the life insurer. An IDBI Bank executive confirmed the hiring of the investment bank for the sale process and that the bank plans to sell its stake in the life insurer by March 2018.

Below is a snapshot of November reports of possible deals compiled by S&P Global Market Intelligence.

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Punjab National Bank will divest stakes in three units. The bank said Nov. 2 that it will off-load its entire stakes in Principal PNB Asset Management Co. and Principal Trustee Co. Pvt. Ltd. to Principal Financial Group Inc. The bank will also sell part of its stake in PNB Housing Finance Ltd.

In other deals, Federal Bank Ltd. has shortlisted two candidates to buy stakes in its nonbanking financial arm, The Economic Times reported Nov. 15. The lender is looking to divest a 26% stake in wholly owned unit FedBank Financial Services Ltd., according to Shyam Srinivasan, managing director of the bank.

The two shortlisted candidates are funds based locally, Srinivasan said. The deal with any of the two is expected to be finalized in the next three months.

Meanwhile, three other Indian banks are engaged in talks with investors to acquire equity interest in the lenders. Commercial lending and leasing company Clix Capital Services Pvt. Ltd. is reportedly in talks with Catholic Syrian Bank Ltd. to acquire a minority stake in the lender, The Economic Times reported Nov. 14. Clix Capital is looking to invest between 6 billion and 8 billion rupees in Catholic Syrian Bank, the sources said.

In addition, Singaporean sovereign wealth fund GIC and Canada Pension Plan Investment Board are in negotiations to co-invest with Bain Capital to take a 10% stake in India's Axis Bank Ltd., Mint reported Nov. 1. The parties are looking to invest US$1.9 billion and US$2 billion in what could be one of the biggest private equity deals in India's banking industry. Bain is also reportedly in talks to invest between US$750 million and US$1 billion in Axis Bank.

Lakshmi Vilas Bank Ltd., for its part, is in formal negotiations with Max Life Insurance Co. Ltd. for the insurer to raise its stake in the lender to up to 10%, The Economic Times reported Nov. 3.

The potential investment could make Max Life the single-largest shareholder of the bank. A potential deal could cost Max Life about 1.5 billion rupees at the current valuation. If the deal pushes through, Lakshmi Vilas Bank plans to use the proceeds for its immediate capital requirements and for its expansion and technological transformation.

Max Life is not the only Indian insurer interested in acquisitions. HDFC Standard Life Insurance Co. Ltd. is open to acquiring other players in the market after its IPO, the Press Trust of India reported Nov. 1. The IPO, which opened Nov. 7, will provide the insurer with funds to pursue acquisitions in the future, said Amitabh Chaudhry, the insurer's managing director and CEO. The insurer will look at acquisitions of both small and big companies, he added.

Moreover, two Indian general insurers are among the bidders for Star Health and Allied Insurance Co. Ltd. As many as 12 entities, including HDFC ERGO General Insurance Co. Ltd. and ICICI Lombard General Insurance Co. Ltd., have placed bids to acquire Star Health and Allied Insurance, Mint reported Nov. 24.

The bids range from US$850 million to US$1 billion, sources said. Star Health and Allied Insurance's investors evaluated the bids on Nov. 24.

Carlyle Group LP, which is among the interested buyers in Star Health and Allied Insurance, is also reportedly eyeing a stake in another Indian insurer, Royal Sundaram General Insurance Co. Ltd. Carlyle and Apax Partners LLP are said to be some of the potential buyers for a 49% stake in Royal Sundaram General Insurance, Bloomberg News reported Nov. 15. A potential deal could raise up to US$500 million.

To read articles about other deal possibilities, click on the following headlines:

Report: 2 Japanese shinkin banks in merger talks

Report: Challenger eyes AMP's life insurance unit

Report: Suncorp extends deadline for life insurance biz bids

Report: AMP pushes ahead with life insurance biz sale, courts foreign buyers

Report: MetLife open to renegotiating with ANZ on life insurance biz sale

Report: 3 Japanese insurers interested in Suncorp's life insurance biz

Mitsubishi UFJ Financial seeks partnerships in China amid stringent regulations

Report: Bank of Tokyo-Mitsubishi seeks to acquire 40% stake in Indonesian bank

Report: Taishin Financial considering more securities brokerage M&A

Report: Taiwan's Chang Hwa Commercial Bank eyes Jih Sun Financial stake

Yuanta Financial unit to dispose of 50% stake in asset management firm

Malaysian pension fund in talks for stakes in foreign insurers' local units

Inditrade Capital eyes acquisition of majority stake in microfinance company

Shriram Group interested in resuming deal talks with IDFC

Report: €1B offers for ERGO's German life portfolios deemed too low