6 Companies in fray to buy DHFL’s stake in Pramerica Life Insurance
Six Companies has shown interest in acquiring Dewan Housing Finance Ltd’s stake in Pramerica Life Insurance Company Ltd according to sources. Vijay Shekhar Sharma’s Paytm, Sachin Bansal-led Navi Technologies are among those who have submitted expressions of interest (EOIs). US-based distressed asset fund Oaktree Capital and Piramal Group, who submitted bids for DHFL under the Insolvency and Bankruptcy Code, have also shown interest in acquiring the insurance business, added the person. Two UK-based firms also submitted EOIs for the stake, but their names could not be confirmed immediately. Pramerica Life Insurance is a joint venture between DHFL’s wholly-owned subsidiary and Prudential International Insurance Holdings (PIIH). DHFL owns 100% stake in an intermediate entity – DHFL Insurance Limited (DIL) – which in turn holds 50% in Pramerica Life Insurance. Yardstick Developers, linked to Wadhawan Global Capital, a promoter entity of DHFL, holds another 1% stake. Prudential International Insurance Holdings holds the remaining 49% stake. “The process to sell the insurance company will run in parallel. Banks are hopeful of recovering about ?700-800 crore by selling DHFL’s stake in the life insurance business,” said the person cited earlier.
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