Zurich Insurance to Acquire 70% Stake in Kotak Mahindra General for Rs 5,560 Crore – News18

Kotak Mahindra Bank has stated Zurich Insurance Company has agreed to choose up 70 per cent stake as a substitute of 51 per cent in its common insurance coverage arm. In November, Zurich Insurance Company had introduced plans to purchase a 51 per cent stake in Kotak Mahindra General by way of a mixture of capital infusion and share buy, adopted by a subsequent acquisition of a further stake of 19 per cent inside a interval of three years from the preliminary acquisition.

“The parties to the aforesaid transaction, viz., the bank, Zurich, and Kotak General have mutually agreed that Zurich will acquire 70 per cent stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately Rs 5,560 crore, instead of the proposal announced in our earlier disclosure,” the financial institution stated in a regulatory submitting. The different phrases of the transaction stay unchanged, it stated.

The proposed 70 per cent acquisition could be topic to fulfilment of customary circumstances precedent, together with the receipt of regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (Irdai), it stated. As per the present regulatory pointers, a overseas entity can personal up to 74 per cent in an insurance coverage enterprise in India.

Earlier this month, the Competition Commission of India (CCI) accepted acquisition of 70 per cent stake by Zurich Insurance Company Ltd in Kotak Mahindra General Insurance Company Ltd. The acquirer is a completely owned subsidiary of Zurich Insurance Group Ltd (Zurich Insurance Group). It is a number one multi-line insurer serving folks and companies in greater than 200 international locations and territories.

(This story has not been edited by News18 employees and is printed from a syndicated information company feed – PTI)