Mohit Burman, director of FMCG major Dabur group, is in talks with Syndicate Bank to sell the 35% stake he holds in Aviva Life Insurance. Currently, 74% stake is held by Mohit Burman in his individual capacity, while the balance is held by UK?s Aviva. The potential value of the transaction could not be immediately ascertained.
Burmans are promoters of Dabur and Mohit Burman is credited with the family’s foray into sunrise sectors like insurance and pensions. However, the need for funds to scale up the business has apparently prompted him to induct a domestic partner into the business.
Regulations permit a foreign firm to hold only up to 26% stake in insurance; so Aviva cannot raise its stake.
In April, Syndicate Bank had selected 12 insurance companies to enter the life insurance business.
Syndicate Bank had recently held discussions with several insurance companies apart from Aviva Life like Birla Sun Life, HDFC Standard Life, Max New York Life. It is learnt that talks with Aviva has progressed to a critical stage. Syndicate Bank officials could not be reached for comment. When contacted, an Aviva Life spokesperson said: ?we do not comment on market speculation?.
Aviva Life registered a profit of R29 crore in FY11 for the first time since launch of its operations in May 2002. The promoters have jointly pumped in R2,004 crore so far.