MANULIFE, HDFC LIFE SAID TO BID FOR HSBC INDIA INSURANCE ARM
ACCORDING to Reuters, HSBC plc is selling its 26% stake in a life insurance joint venture with two Indian state-run banks. The stake is valued at about US$200 million (MYR607.90 million). The winner of the bid will get immediate access to about 5,500 branches of the two state-run banks. HDFC Life, a joint venture between India's top mortgage lender HDFC Ltd and British insurer Standard Life; Birla Sun Life, a venture between Indian conglomerate Aditya Birla Group and Canada's Sun Life; and ICICI Prudential Life, a joint venture between India's No. 2 lender ICICI Bank and Britain's No. 1 insurer Prudential, were among the bidders to submit first round bids in early April. According to industry sources, HSBC's two Indian partners in the venture – Canara Bank Ltd and Oriental Bank of Commerce Ltd – could also pare their stakes although no final decision has been made on this. That could push the deal value to US$800 million (MYR2.43 billion), including a bank distribution agreement.
US$1.00 = MYR3.04