Bank of India (BOI) recently announced that it is looking to sell a 25.05% stake in Star Union Dai-ichi Life Insurance (SUD Life) at a price of around Rs.170.50 apiece. The public sector lender has issued a request for proposal of sale for around 6,48,73,964 of its equity shares, which amounts to 25.05% of the lender’s stake in the joint venture partnership.
At the floor price fixed by the lender, the sale of the company’s equity shares will allow the lender to raise up to a total of Rs.1,106 crore. Bank of India has invited a non-binding bid for the purchase of its equity shares by 12 April 2019.
Bank of India currently holds a 28.96% stake in Bank of India, while Union Bank and Japan-based Dai-ichi Life Insurance hold a 25.10% and 45.94% stake in the life insurance venture, respectively. Star Union Dai-ichi Life Insurance began operations in February 2009.
The life insurance company’s income from premium touched Rs.1,211 crore during the period between April 2018 and December 2018, while its profit after tax (PAT) touched Rs.55 crore during the period under review.
Source: Business Standard, Business Today