Bank Of India To Sell 25.05% Stake In Life Insurance Joint Venture For Rs 1,106 Crore
Bank of India said it will sell 25.05 percent stake in its insurance joint venture Star Union Dai-ichi Life Insurance Co. for at least Rs 1,106 crore.
The bank has floated a request for proposal for sale of over 6.48 crore equity shares, or 25.05 percent stake in its joint venture with Union Bank of India and Japan's Dai-ichi Life Holdings Inc.
The floor price for the stake sale has been fixed at Rs 170.50 a share, the public sector lender said in a regulatory filing.
At the floor price, the share sale would fetch over Rs 1,106 crore to the lender.
Bank of India has invited non-binding proposal/bid for purchase of the said equity shares by April 12.
The proposed stake sale is part of Bank of India's plan to offload some of its non-core assets and raise funds.
Star Union Dai-ichi Life Insurance is a joint venture between Bank of India, Union Bank of India and Dai-ichi Life, holding 28.96 percent, 25.10 percent and 45.94 percent stake, respectively.
Established in February 2009, SUD Life's premium income stood at Rs 1,211 crore, while its profit after tax stood at Rs 55 crore in April-December 2018-19.
In January, the Reserve Bank of India removed Bank of India from its prompt corrective action framework, easing some restrictions on lending.