Sun Life to up stake in Birla Sun Life for Rs 1,664 crore
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Sun Life to up stake in Birla JV for Rs 1,664 crore

Canada's Sun Life Assurance Company Limited will raise its stake in the joint venture from 26 per cent to 49 per cent.

  • New Delhi,  December 3, 2015  
  • |  
  • UPDATED   11:10 IST
Sun Life to up stake in Birla Sun Life
Canada's Sun Life Assurance Company Limited will raise its stake in the joint venture from 26 per cent to 49 per cent. (Photo: Reuters)

Canada's Sun Life Assurance Company Limited (Sun Life) will raise its stake in its joint venture (JV) Birla Sun Life Insurance (BSLI) from 26 per cent to 49 per cent with an investment of Rs 1,664 crore.

The Indian partner, Aditya Birla Nuvo Limited (ABNL), has informed the Bombay Stock Exchange that as per the share sale and purchase agreement, which was executed on Wednesday, Sun Life will purchase an additional 23-per cent stake in BSLI from ABNL. ABNL will sell approximately 437 million equity shares constituting 23 per cent 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 per cent to 49 per cent while ABNL will continue to hold the controlling stake at 51 per cent. The stake sale will fetch ABNL Rs 1,664 crore valuing BSLI at Rs 7,235 crore, it added. ABNL and BSLI chairman Kumar Mangalam Birla said, "Financial services is one of our fastest-growing businesses and is among our core businesses. BSLI is a private life insurance player in India with the new business premium market share of 7.9 per cent as of September 30, 2015."

Sun Life financial president and chief executive officer Dean Connor said, "Increasing our ownership position in BSLI... is exactly on strategy and supports our aspirations for Sun Life Asia as one of our four pillars of growth." The transaction is expected to close by the end of 2015-16 subject to customary closing conditions and requisite statutory and regulatory approvals in India and Canada, the company added.