Global insurance giant Zurich Insurance will buy 70 per cent stake in Kotak Mahindra General through a combination of capital investment and share purchase. Kotak Mahindra Bank gave this information on Friday. In November, Zurich Insurance Company had announced plans to acquire a 51 per cent stake in Kotak Mahindra General through a combination of capital infusion and share purchase, followed by an additional 19 per cent within a three-year period, Bhasha reported. The stake will be acquired.
The deal is worth about Rs 5,560 crore
The bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70 per cent stake in Kotak General through a combination of primary and secondary acquisitions in a single tranche, the bank said in a regulatory filing. Will do. This is a total deal worth about Rs 5,560 crore. It said that other terms of the transaction would remain unchanged.
Competition Commission of India had given approval
The proposed 70 per cent acquisition will be subject to fulfillment of customary conditions, including obtaining regulatory approvals from the Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (IRDAI). As per existing regulatory guidelines, a foreign entity can hold up to 74 per cent stake in an insurance undertaking in India. Let us tell you, in the beginning of this February, the Competition Commission of India (CCI) had approved the acquisition of 70 percent stake in Kotak Mahindra General Insurance Company Limited by Zurich Insurance Company Limited.
The Acquirer is a wholly owned subsidiary of Zurich Insurance Group Limited (Zurich Insurance Group). It is a leading multi-line insurance company serving people and businesses in more than 200 countries and territories. This is a big deal in the insurance sector.
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