Sun Life Financial hikes stake to 49% in Birla Sun Life Insurance

ABNL continues to hold the controlling stake in BSLI at 51%

Aditya Birla Nuvo Limited (ABNL) on Monday announced the completion of the transaction by which Sun Life Financial had increased its stake in their life insurance joint venture, Birla Sun Life Insurance, from 26 per cent to 49 per cent. ABNL continued to hold controlling stake, 51 per cent, in the JV.

With the regulatory approvals in place, from the Insurance Regulatory and Development Authority of India, Foreign Investment Promotion Board and Competition Commission of India, ABNL sold approximately 437 million equity shares constituting 23 per cent of the issued and paid up equity share capital of BSLI to Sun Life.

The company received a sum Rs 1,664 crore from the stake sale, valuing the JV at Rs 7,235 crore. In a statement, the company said that the proceeds will reduce the net debt of ABNL substantially. Coupled with the free cash flow generation from divisions, the standalone balance sheet of ABNL stands strengthened to support its growth plans.

ABNL remains the key growth engine for ABNL. Besides, ABNL also has capital commitment towards the recently ventured solar power business.