by Suman Gupta
Mumbai – October, 2017: Union Bank of India today entered into Investment & Subscription agreements with globally leading life insurer, Dai-ichi Life Holdings, Inc., Japan (Dai-ichi Life) for their investment of Rs.133.43 crore in Union Asset Management Company Private Ltd. through Compulsorily Convertible Preference Shares (CCPS). Considering the present equity investment of Union Bank of India in Union Asset Management Company, the investment of Dai-ichi Life would be 39.62% on fully diluted basis post conversion to equity.
Union Bank of India has always endeavored to provide bouquet of financial products to all its customers under one roof particularly mutual fund which is a common investment avenue for any customer. Keeping this in view, Union Bank of India established its mutual fund subsidiary in partnership with KBC Participations Renta, Belgium with shareholding of 51:49 in December 2009. Post exit of KBC Participations Renta, Belgium in order to ensure continuity of mutual fund business & service to investors, the Bank acquired 49% stake from KBC on 20th September 2016 and since then Union KBC Asset Management Company changed into Union Asset Management Company Private Ltd. and became wholly owned subsidiary of the Bank.
In its efforts to search suitable business partner for the AMC, among various options Union Bank of India identified a suitable business partner viz. Dai-ichi Life Holdings, Inc., Japan which is involved in life insurance and Asset Management business. The Bank is having long standing relationship of around 8 years with Dai-ichi Life Holdings, Inc. as a partner in Bank’s Joint Venture Life Insurance viz. Star Union Dai-ichi Life Insurance Company Limited. Dai-ichi Life Holdings, Inc. is a 115 year old leading life insurance company in Japan as well as across the globe with strong networth. They have their presence in important overseas centres such as USA, Australia, Vietnam, Indonesia, Thailand and are also in the process of expanding their network in other centres.
Speaking on the occasion, Shri Atul Kumar Goel, Executive Director, Union Bank Of India said that we are delighted to have yet another partnership with Dai-ichi Life in Union AMC and through this new relationship, Dai-ichi Life will also offer their expertise and best business practices in asset management business for the mutual benefit. This extended relationship of Dai-ichi Life in Union AMC will definitely bring synergy for strong capital base, future business growth and efficient corporate governance. He further stated that both the Bank and Dai-ichi Life Holdings, Inc. will be seeking final approval from SEBI, CCI and other regulators for completing the entire transaction.