Bank of Baroda to acquire 21% stake of Union Bank of India in IndiaFirst Life Insurance

11 Feb 2022 , 05:25 PM

Bank of Baroda will acquire a 21% stake in Union Bank of India in IndiaFirst Life Insurance Company Limited. In conclusion of this stake sale process, the revised shareholding in IndiaFirst Life Insurance Company Limited will be Bank of Baroda-65%, Carmel Point Investments India Pvt Ltd-26%, and Union Bank of India- 9%. IndiaFirst Life Insurance Company Limited will continue to have long-term agency distribution agreements with both Banks (BOB and UBI), even after this stake sale.

The acquisition is pursuant to a 'Right of First Offer (ROFO) made by Union Bank of India (UBI) to the existing shareholders of IndiaFirst Life Insurance Company Limited (a joint venture between Bank of Baroda (BOB), Union Bank of India (UBI) and Carmel Point Investments India Pvt Ltd), to divest 21% of its stake in IndiaFirst Life Insurance Company Limited and on completion of related processes under the Shareholders Agreement (SHA).

“After receiving approvals from the respective Boards of both Banks, it has been decided by Bank of Baroda to acquire the 21% stake of Union Bank of India in IndiaFirst Life Insurance Company Limited, subject to receiving all statutory and regulatory approvals,” company said in a filing on Thursday.

Bank of Baroda ended at Rs113.50 per piece down by Rs1.25 or 1.09% from its previous closing of Rs114.75 per piece on the BSE. Union Bank of India ended at Rs46.25 per piece down by Rs0.9 or 1.91% from its previous closing of Rs47.15 per piece on the BSE.