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. "

The company's life insurance products will continue to be distributed through ING Vysya Bank's 400 plus bank branches across India on an exclusive basis. The Bank's focus on strengthening its retail distribution will also benefit the distribution of ING Vysya Life products. The Bank's extensive rural branch network will also continue to support the development of ING Vysya Life's rural business.

Anil Singhvi, whole time director of GACL, stated, "Our decision to invest in ING Vysya Life was based on their rapid expansion to date and our belief that the company will continue to build on this growth, tapping the global expertise of ING Group's sizeable insurance operations. We are excited to acquire this stake in ING Vysya Life at a time when the private insurance sector in India is growing rapidly, as seen by the industry's increase in premium income of 129 per cent the fiscal year 2004-05."

The stakes of the other shareholders remain unchanged, with ING Group retaining its 26 per cent stake, the maximum stake currently allowed under FDI regulations.