MAN­ULIFE, HDFC LIFE SAID TO BID FOR HSBC IN­DIA IN­SUR­ANCE ARM

Insurance - - COMPANY CORNER -

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

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