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Grapevine: Adani leads race for Sri Lanka project; AXA to exit Mahindra group company
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The Adani group has emerged as a frontrunner to develop Sri Lanka’s stalled East Container Terminal at Colombo port, Bloomberg said.

The group and a local partner have received an in-principle approval to sign a deal with the Sri Lanka Ports Authority, which will hold a majority stake in the project, it added.

This would be the second overseas venture for India’s largest private port operator, Adani Ports and Special Economic Zone Ltd (APSEZ).

It had last year signed an agreement to develop a $275 million container terminal at Yangon port in Myanmar.

Meanwhile, people in the know told The Economic Times that French insurer AXA is selling its stake in a subsidiary of listed M&M Financial Services for Rs 400 crore ($53.6 million).

The deal would value Mahindra Insurance Brokers at Rs 2,000 crore ($268 million), which means a 53% premium to the valuation at which XL Catlin group had invested in the business around three years ago.

XL Catlin had acquired the stake from LeapFrog Financial Inclusion Fund.

AXA came to acquire a 20% stake in the Mahindra group company as part of its global purchase of XL Catlin for $15 billion two years ago.

AXA is working with advisers on the stake sale, which is said to have generated interest from large PE funds. Mahindra group may also be interested in acquiring the stake, one of the persons said.

The insurer is selling the stake over conflict of interest.

“There is a conflict of interest because as a manufacturer of insurance products they would not want to be involved in the broking business,” another person said.

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