Canada's Fairfax Asia Limited will acquire some 41 million shares, or 35 percent, of BIDV Insurance Corporation, thus becoming a strategic investor in the firm.

The two parties signed a contract at BIDV Insurance headquarters in Hanoi on May 4. Officials said they expect to carry out the sale in the third quarter of this year, adding that this process would depend upon the approval of Vietnamese authorities.

Fairfax Asia is a subsidiary of Toronto-based global insurer and reinsurer Fairfax Financial Holdings. After completing the acquisition, Fairfax will have two members on the management board and two on the supervisory board of BIDV Insurance.

The Canadian partner is to provide BIDV Insurance with technical assistance related to underwriting, investment and risk management, as well as information technology and the development of distribution channels.-VNA