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Aviva Shortlists 3 Insurers to Sell 26% Stake in Indian JV

Published: 21st April 2014 06:00 AM  |   Last Updated: 21st April 2014 01:44 AM   |  A+A-

The UK-based financial services major Aviva Plc seems to have shortlisted three insurance firms to sell its 26 per cent stake in Aviva India, a joint venture with FMCG player Dabur.

According to sources, the three shortlisted firms include -- Max Life Insurance, Birla Sun Life Insurance and HDFC Life Insurance -- and due diligence is expected to start shortly.

Aviva has roped in J P Morgan and Deutsche Bank as consultants for the proposed transaction.

Aviva Plc with 26 per cent stake invested ` 521.27 crore, while Dabur’s share stood at ` 1,483.62 crore as on December 2013. It has a paid up capital of `2,004 crore.

When contacted, Aviva India declined to comment.

There are 45 private players in life and general insurance business sharing about 30% of the market share in life insurance and 41% share in non-life sector.

Aviva’s proposed exit will be the third transaction in the past two years. It may be recalled that last year, the Netherlands-based ING exited from ING Vysya Life Insurance Company by selling its 26% stake to domestic partner Exide Industries.

ING’s exit from the Indian life insurance joint venture was part of the previously announced divestment of ING’s Asian Insurance and Investment Management businesses, the Dutch banking and insurance company had said in a statement.

In 2012, the US-based insurer New York Life exited selling its 26% stake in its joint venture company to Japan’s Mitsui Sumitomo Insurance Company.

Third Exit in past two years

Aviva’s proposed exit will be the third transaction in the past two years.

The Netherlands-based ING exited from ING Vysya Life Insurance Company by selling 26%  stake to domestic partner Exide Industries.

In 2012, the US-based insurer New York Life exited selling 26% stake in its JV company to Japan’s Mitsui Sumitomo Insurance Company.

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