Federal Bank Boosts Stake in Ageas Federal Life Insurance

Federal Bank is set to increase its stake from 26% to 30% in Ageas Federal Life Insurance Co Ltd after signing an agreement to acquire an additional 4% stake. The acquisition is subject to regulatory approvals and conditions outlined in a Share Purchase Agreement.

Federal Bank on Friday announced an agreement to acquire an additional 4% stake in Ageas Federal Life Insurance Co Ltd (AFLIC) from Ageas Insurance International. This move increases Federal Bank's total stake in the venture to 30% from the previous 26%.

The bank disclosed through a BSE filing that it had executed a 'binding Memorandum of Understanding' with Ageas Insurance International NV (Ageas) and AFLIC. The acquisition awaits the execution of a Share Purchase Agreement (SPA), fulfillment of customary conditions precedent, and necessary regulatory approvals.

The Reserve Bank has granted Federal Bank approval for this acquisition, which involves an investment of up to Rs 105 crore. Ageas Federal Life Insurance is a joint venture between Ageas, a European multinational insurance corporation, and Federal Bank. Despite the announcement, Federal Bank's shares saw a decrease of 2.53%, closing at Rs 192.75 on BSE.

(With inputs from agencies.)