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Royal Sundaram sells 40% stake to Belgium’s Ageas Insurance for ₹1,520 crore
Sundaram Finance, which holds 75.9% in Royal Sundaram, proposes to divest 25.9% shareholding in the stake sale process
Mumbai: Private insurance company Royal Sundaram General Insurance Ltd announced Wednesday the sale of 40% stake to Ageas Insurance NV of Belgium for ₹ 1,520 crore. Currently Sundaram Finance Ltd holds 75.9% in Royal Sundaram and proposes to divest 25.9%, thereby retaining 50% of its holding, post the divestment. Some other existing Indian shareholders will hold the balance 10% in Royal Sundaram. The transaction is expected to close in the first quarter of 2019.
For the year ended 31 March, Royal Sundaram generated gross written premium (GWP) of ₹ 2,643 crore and achieved a profit after tax of ₹ 83 crore. Its GWP grew 19% between 2015 and 2018, while profit grew 56% in the same period, the statement said.
Ageas already owns a 26% stake in IDBI Federal Life Insurance, a three-way joint venture between IDBI Bank, Federal Bank and the Belgian insurer. The shareholders were looking to sell their entire stake in IDBI Federal Life seeking around ₹ 6,000 crore. However, talks did not result in a deal.
On Wednesday, Sundaram Finance fell 0.27% to ₹ 1,430.15 on the BSE while the benchmark Sensex closed flat at 35,141.99 points.fourthMAds
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Business NewsCompaniesNewsRoyal Sundaram sells 40% stake to Belgium’s Ageas Insurance for ₹1,520 crore
First Published:14 Nov 2018, 11:13 PM IST
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