Aditya Birla Sun Life Insurance Co. Ltd. has matched Max Life Insurance Co. Ltd.'s bid for a significant stake in IDBI Federal Life Insurance Co. Ltd., two people aware of the development told The Economic Times of India.
Max Life, a unit of Max Financial Services Ltd., had been the front-runner among the nine companies that initially bid for IDBI Federal Life, having been short-listed along with Exide Life Insurance Co. Ltd. But Birla Sun Life is now in the race, with a source saying it matched Max Life's offer valuing the company at more than 60 billion Indian rupees.
Belgian newspaper De Tijd reported the same day that Ageas SA/NV expects to make as much as €200 million from the sale of its 26% stake in IDBI Federal Life Insurance. An earlier Economic Times report indicated that IDBI Bank Ltd. was planning to sell its entire 48% stake. JP Morgan is managing the sale process.
The remaining 26% of IDBI Federal Life is held by Federal Bank Ltd.
Aditya Birla Sun Life Insurance is a 51/49 joint venture of Aditya Birla Group's Aditya Birla Capital Ltd. and Sun Life Financial Inc.'s Sun Life Assurance Co. of Canada.
As of May 21, US$1 was equivalent to 68.12 Indian rupees.
