ING Vysya Life shareholding structure to change following stake sale to GACL

Our Banking Bureau
30 May 2005

ING Vysya Life Insurance Co Ltd. (ING Vysya Life) today announced details of a proposed new shareholding structure following the announcement by ING Vysya Bank to sell its 14.87 per cent stake in the company to Gujarat Ambuja Cements Limited (GACL). The proposed transaction is subject to Insurance Regulatory and Development Authority and other relevant regulatory approvals. GACL will pay Rs.60.9 crore for the stake.

The announcement comes as ING Vysya Life is experiencing rapid growth with premium income expanding by 312 per cent in 2004. Since beginning operations in September 2001, the business has achieved a strong market position in South India and is ranked eighth nationally among private sector players as at 31st March 2005

GACL operates six cement plants and three grinding plants, with a current capacity of 14.5 million tonnes per annum.

In the fiscal year ended June 2004, GACL reported net sales of about Rs. 1,968 crore, and net profit of Rs. 337 crore. As of 13 May 2005, it had a market capitalisation of approximately Rs. 8,000 crore. GACL will take one seat to join the current nine-member board of directors of ING Vysya Life.

Frank Koster, managing director and CEO of ING Vysya Life, stated, "ING Vysya Life has grown considerably over the last three and a half years and is now poised to gain scale rapidly. We welcome GACL's proposed investment in the company and believe that ING Vysya Life will benefit from having a reputable Indian group such as GACL as a shareholder. "