Dai-ichi Life eyes stake in Union KBC AMC

Japanese financial services major Dai-ichi Life Insurance has evinced interest in buying some stake in Union KBC Asset Management and is in preliminary talks with the fund house's current majority shareholder Union Bank of India.

Last month, Union Bank had completed acquisition of 49% shareholding of Union KBC AMC and Union KBC Trustee Company from the Belgium-based KBC Participants Renta SA and its affiliates. Post acquisition, the Union KBC Asset Management Company and Union KBC Trustee Company have become wholly owned subsidiaries of the bank.

"The talks are currently under way for a potential deal," a source told PTI.

While Dai-ichi Life Insurance refused to comment on the issue, repeated attempts to reach out to Union Bank did not elicit response.

Union Bank already has a life insurance joint venture with Dai-ichi Life and Bank of India.

"Dai-ichi Life stands to be a strong contender due to its global expertise in providing financial services and also, the bank already has a life insurance JV with the company," the source said.

Union KBC AMC asset under management stood at around Rs 4,000 crore as on June 30, 2016.

Prior to Union Bank's acquisition of stake in Union KBC AMC, the bank was holding 51% in the mutual fund JV and the remaining 49 % was with the KBC Asset Management NV through its 100% subsidiary KBC Participations Renta.

Last October, Union Bank had said it would be buying out the 49% stake of KBC Asset Management in Union KBC Asset Management Company.