Abrdn (Mauritius Holdings), a wholly owned subsidiary of UK-based investment firm abrdn, has sold its 1.66% equity stake in India’s HDFC Life Insurance Company.
Divestment of the stake, which represents 35.7 million shares, has allowed the company to fully exit HDFC Life.
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The shares of HDFC Life were sold at an average price of Rs579.61 ($7).
The sale will see abrdn (Mauritius Holdings) securing around Rs20,415m (£198m), net of taxes and expenses.
In a statement, abrdn (Mauritius Holdings) said: “As advised at the time of the company’s full-year results, the company is committed to returning a significant proportion of capital generated from further stake sales by way of share buybacks.”
Prior to the sale, CNBC-TV18 reported that abrdn will divest the shares through a block deal.
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By GlobalDataThe sale represents a departure of abrdn from India’s life insurance market after a period of 23 years, reported Mint.
The latest development comes after abrdn (Mauritius Holdings) sold its 2% stake in HDFC Life.
The divestment saw the sale of 43 million shares in HDFC Life via a block transaction, at Rs574.15 per share, thereby reducing abrdn (Mauritius Holdings)’s stake in the insurer to 1.66%.
Proceeds from the deal strengthened abrdn’s capital resources to enable investment and help in returning capital “in excess of business needs”.
