GACL buys 15% in ING Vysya Life

Gujarat Ambuja Cements Ltd (GACL) yesterday completed acquisition of 14.87 per cent stake in ING Vysya Life Insurance from ING Vysya Bank.

ING Vysya Bank has informed the Bombay Stock Exchange that Insurance Regulatory Development Authority (IRDA), approved the transaction completed on Thursday.

The GACL board had decided to acquire the 14.87 per cent stake, or 5.80 crore equity shares of the insurance company in May this year.

With the completion of the deal, the ING group continues to hold 26 per cent "" the maximum stake currently allowed under foreign direct investment FDI regulations, Gujarat Ambuja Cements holds 14.87 per cent, and Enam 9.13 per cent.

Exide Industries had agreed to acquire 49.13 per cent stake, subject to regulatory approvals, from GMR Industries for over Rs 200 crore.

Further, Exide has plans to subscribe to convertible warrants to increase its holding to 50 per cent. On conversion of the warrants, the total capitalisation of ING Vysya Life will increase to Rs 440 crore from Rs 390 crore.

GMR Industries made it clear that its stake sale to Exide was aimed at financing its expansion projects. The company said it was now keen to focus on growth in the infrastructure business "" the core sector in which it is involved, and also agri-business.