Federal Bank on Friday said it has signed an agreement to acquire an additional 4 per cent stake in Ageas Federal Life Insurance Co Ltd (AFLIC) from Ageas Insurance International. In a BSE filing, Federal Bank said it has executed a “binding Memorandum of Understanding” today with Ageas Insurance International NV (Ageas) and Ageas Federal Life Insurance Co Ltd (AFLIC) for the acquisition.
The acquisition is contingent upon execution of Share Purchase Agreement (SPA) between the parties, satisfaction of customary conditions precedent to be set forth in the SPA, and regulatory approvals, it added.
With this, the stake of Federal Bank in Ageas Federal will rise to 30 per cent, from 26 per cent.
The board of Federal Bank had on March 25 approved signing of the MoU with Ageas.
It further said the Reserve Bank has accorded its approval to Federal Bank for acquisition of additional 4 per cent stake in AFLIC for up to Rs 105 crore.
Ageas Federal Life Insurance is a joint venture between Ageas, a multinational insurance giant headquartered in Europe, and Federal Bank.
Shares of Federal Bank closed at Rs 192.75, down 2.53 per cent over the previous close on BSE.
