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Federal Bank executes binding MoU to acquire 4% equity stake in Ageas Federal Life Insurance
Mar-29-2025

Federal Bank has executed a binding Memorandum of Understanding (MoU) on March 28, 2025 with Ageas Insurance International NV (Ageas) and Ageas Federal Life Insurance Company (AFLIC) for acquisition of 4% equity stake by the Bank in AFLIC, from Ageas. The aforesaid acquisition is contingent upon: execution of Share Purchase Agreement (SPA) between the Parties; satisfaction of customary conditions precedent to be set forth in the SPA and regulatory approvals required under applicable laws.

Earlier, the bank had received approval from Reserve Bank of India (RBI) for acquisition of additional 4% stake in Ageas Federal Life Insurance Company. The acquisition upon materialization will increase the equity stake of The Federal Bank in Ageas Federal Life Insurance Company from 26% to 30%. The acquisition is expected to be completed on or before October 31, 2025.

Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having many branches and ATMs spread across different States in India.

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