Bandhan Financial Holdings (BFHL) has entered into an agreement to acquire the entire stake of Aegon and Bennett, Coleman & Co. Ltd (BCCL) in Aegon Life Insurance.
The insurance buyout will allow Kolkata-based Bandhan, which began as a microfinance company, to expand its remit beyond banking and asset management. The stake purchase is subject to regulatory approvals. The value of the buyout, and the quantum of proceeds to each of the exiting stakeholders, weren’t immediately known.
“We welcome Bandhan as the new shareholder of Aegon Life. Aegon Life has built a leading digital-first platform and we wish Aegon Life all the best for its next phase of growth together with Bandhan,” said Sivakumar Sundaram, CEO, BCCL.
Jefferies acted as the exclusive financial advisor to Aegon and BCCL in the transaction, while AZB & Partners acted as the legal advisor to Aegon. Khaitan & Co. was the legal advisor to Bandhan.
Aegon Life Insurance, a digitally-focused insurer serving close to 300,000 customers, conducted a competitive bidding process and saw participation from various investors. BFHL emerged as the successful bidder for the acquisition, Bandhan said in a press statement.
“The acquisition of Aegon Life provides us an opportunity to enhance our portfolio of products and services in the financial services sector combined with access to an established technology platform and product suite, coupled with an experienced management team,” said Karni S Arha, managing director, BFHL.
BFHL is wholly owned by Bandhan Financial Services and is the promoter of Bandhan Bank, holding around 39% stake. It also owns a 60% stake in Bandhan Asset Management.
“Looking ahead, BFHL plans to make affordable insurance coverage available to a wide spectrum of customers across the country for their financial protection.”
Source: Economic Times