14th Aug 2015 17:43
LONDON (Alliance News) - Standard Life PLC on Friday said it is looking to increase its stake in HDFC Standard Life Insurance Company Ltd to 35% from 26% for about GBP169 million.
The Edinburgh-based savings and investments company said it is seeking regulatory approval to increase its stake in HDFC Life following the passing of a key insurance bill by the Indian Parliament in March. It has agreed terms with HDFC Ltd, its joint venture partner, over the move.
The bill passed by India's Parliament enables foreign investors to own up to 49% of local insurers, an increase on the previous maximum of 26%.
Standard Life had already said it was in talks over a potential increased stake in the joint venture. The FTSE 100 company views India as an attractive growth market, and stated its commitment to both the country and HDFC Life in its half-yearly report published earlier this month.
Standard Life requires approval from the Competition Commission of India, the Foreign Investment Promotion Board, and the Insurance Regulatory and Development Authority of India for the deal to go through.
"Today's announcement marks a strengthening of our well-established relationship with HDFC. The proposed investment demonstrates our long-term commitment to India and the future success of HDFC Life," Chief Executive Keith Skeoch said in a statement.
Standard Life shares closed up 0.4% at 440.20 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
SL..L