Financial Services firm Religare Enterprises today said will exit Aegon Religare Life Insurance Company by selling its stake to existing partner Bennett, Coleman and Company Ltd of the Netherlands.
The existing joint venture is between Religare, BCCL and Aegon. Religare holds 44 per cent equity in the JV. It has reached a definitive agreement with BCCL to acquire Religare's shareholding in the JV, a statement said.
Aegon would increase its stake in the JV Company to 49 per cent while BCCL would acquire the entire 44 per cent from Religare, it said.
This transaction is subject to necessary and appropriate regulatory approvals of CCI, FIPB and IRDA, it added.
Aegon Religare Life Insurance Company started operations in 2008.
With this proposed deal, the foreign partner would have 49 per cent stake, the cap fixed in the sector by Parliament in March. It passed the Insurance Laws (Amendment) Bill, 2015 which seeks to increase foreign investment in private sector companies to 49 per cent from the existing 26 per cent, among other things.
Many foreign partners of both life an non-life insurance companies have announced raising their stake to 49 per cent. Some of them are in the process of seeking various regulatory approval.
Foreign partners of companies like Max Bupa, SBI General have already announced their intent to raise their stake in the joint venture.
Recently, the government approved French insurance firm AXA raising stake in its life insurance JV with Bharti Group to 49 per cent for Rs 858.6 crore.
The French firm has also been permitted to raise stake in the general insurance joint venture with Bharti. This will entail capital flow of Rs 431.40 crore.
Together, AXA's FDI in Bharti group will be worth Rs 1,290 crore.
More foreign partners are expected come forward and raise stake in the Indian insurance business.