Metlife to hike stake in JV with PNB to 47% for ~1,906 crore

Metlife International Holdings is looking to acquire the combined 15.27 per cent shareholding of IGE (India) Private Limited and Elpro International Limited in PNB Metlife India Insurance company for a cash consideration of ~1,906 crore, subject to regulatory approvals.

Once the acquisition is complete, Metlife’s shareholding in PNM Metlife life insurance company will increase to 47.325 per cent, making it the largest shareholder in the private life insurer.

In a statement, Metlife International Holdings said it had entered a share purchase agreement with IGE (India) Private Limited and Elpro International Limited to acquire their total combined shareholding of 15.27 per cent in PNB Metlife India Insurance Company.

The Dabriwala family, through their companies, IGE and Elpro, were one of the initial investors in PNB Metlife. The tentative date of completion of the transaction is November 30, 2021.

Other shareholders of PNB Metlife include Punjab National Bank Limited (PNB), M. Pallonji and Company Private Limited, Jammu & Kashmir Bank Limited (JKB), and other private investors, with Metlife International Holdings and PNB being the majority shareholders. PNB holds 30 per cent stake in the life insurance company.

Kishore Ponnavolu, regional president, Metlife Asia, said, “Metlife’s joint venture in India has all the hallmarks we look for in deploying capital to create long-term shareholder value: a track record of consistent execution, an extensive distribution network, strong growth, and an advantaged position in one of the world’s most attractive life insurance markets.”

This marks the first foreign partner increasing its stake in a joint venture insurance company in India after the government allowed 74 per cent foreign direct investment in the insurance sector. In this year’s Union Budget, the government raised the FDI cap to 74 per cent from 49 per cent and allowed foreign ownership and control with safeguards.