Union Bank of India agrees sale of 40% stake in asset management company with Dai-ichi

MUMBAI: Union Bank of India has signed an in principle agreement with Dai-ichi Life Insurance company for selling 40% stake in the asset management company that is wholly owned by the bank.

Speaking to media soon after the board meeting, Rajkiran Rai, managing director of the bank said that board has given "approval to partner with Dai-ichi. The details are yet to worked out"

He declined to elaborate on the deal size. "we have to yet work out the details on pricing. The proceeds could go to the company as it would be fresh issuance of shares," he said.

Earlier Union Bank had tied up with KBC Participations Rental S. A. to form KBC Asset Management company where the Belgian firm had 49% in for asset management business. Later in September 2016, KBC sold its entire stake in mutual fund to Union Bank of India.