India-based private sector lender HDFC has wrapped up the purchase of a 51% stake in Apollo Munich Health Insurance Company for INR14.95bn ($210.2m).
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The deal has been wrapped up after it received nod from the Competition Commission of India, the RBI, and the Insurance Regulatory and Development Authority of India (IRDAI).
As per the deal first announced in June last year, HDFC acquired Apollo Hospital Group’s entire 50.80% stake in Apollo Munich. Additionally, it also purchased 0.36% shareholding of employees for $1.49m.
Established in 2007, Apollo Munich is a joint venture between Apollo Hospitals and Munich Health, an affiliate of German reinsurer Munich Re.
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HDFC, at the time of inking the agreement, noted that Munich Health will pay INR2.94bn ($41m) to Apollo Hospitals’ subsidiaries to terminate the joint venture.
ERGO Group chairman Markus Rieß said: “The acquisition provides HDFC ERGO with the opportunity to grow by increasing its footprint and distribution network, in line with its strategic objective to be amongst the top private insurers in the industry. Policy holders and channel partners will benefit from enhanced product suites, touch points and technology innovations.”
Anuj Tyagi, who is the executive director and chief business officer at HDFC ERGO General Insurance, has been named as new managing director and CEO of HDFC ERGO Health Insurance. His appointment is subject to receipt of IRDAI approval.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/f0033ba2-8962-4d3e-9676-40aa0bd5cea5.pdf
