03 December, Mumbai
Aditya Birla Nuvo (ABNL), engaged in textiles, apparel, telecom and financial services, today announced that the company has divested 23 percent stake in Birla Sun Life insurance (BSLI) for Rs 1664 crore to Sun Life Financial.
BSLI, an insurance joint venture (JV) between ABNL and Sun life with 1.6 million policyholders through a network of over 55,000 advisors across 489 branches.
The company said, “ABNL has entered into an agreement with the Canadian insurance major Sun Life to sell approximately 43.70 crore equity shares constituting 23 percent of the issued and paid up equity share capital of BSLI.”
On completion of the transaction, Sun Life’s stake in BSLI will increase from current 26 percent to 49 percent while ABNL will continue to hold the controlling stake at 51 percent.
Kumar Mangalam Birla, chairman, Aditya Birla Nuvo and BSLI, said, “Our life insurance business, BSLI plays a key role in helping us reach out to mass India and protect their financial future; also helping us drive the financial inclusion agenda. I am confident that this move will only strengthen our long standing partnership andhelp us realize our vision of being a top three private life insurer in India.”