HDFC gets Irdai nod to acquire stake in Apollo Munich Health Insurance
1 min read 02 Jan 2020, 12:03 PM ISTIn June, HDFC had agreed to acquire the entire 50.8% stake of Apollo Hospitals Group in the health insurance venture
PremiumNew Delhi: Housing Development Finance Corporation Ltd (HDFC), India’s largest mortgage financier, has received approval from Insurance Regulatory and Development Authority of India (Irdai) to acquire 51.2% stake in Apollo Munich Health Insurance – a joint venture between Apollo Hospitals and German reinsurer Munich Re Group.
“The Corporation and HDFC Ergo have received all requisite approvals for the acquisition including competition commission of India (CCI), Reserve Bank of India and the last being from Irdai on 1 January. Post the completion of the proposed acquisition, Apollo Munich will be merged with and into HDFC Ergo, subject to approval from the Mumbai bench of National Company Law Tribunal," HDFC said in a regulatory filing.
In June 2019, HDFC had agreed to acquire the entire 50.8% stake of Apollo Hospitals Group in a health insurance joint venture with German reinsurer Munich Re Group as part of its strategy to tap this potential growth market.
HDFC will pay ₹1,336 crore to Apollo Hospitals for the deal. It will pay an additional ₹10.84 crore to employees of Apollo Munich Health Insurance Company Ltd to purchase their 0.4% stake in the company. The total deal size of ₹1,347 crore for the entire 51.2% stake values Apollo Munich Health Insurance at 1.2 times the gross written premium for fiscal 2019.
HDFC runs HDFC Ergo General Insurance Co, a joint venture with Ergo International AG, the primary insurance entity of Munich Re. Separately, Munich holds 49% stake in Apollo Munich Health Insurance.
Shares of HDFC were up 0.4% at ₹2,444.00, while Apollo Hospitals rose 4.5% at ₹1490.90 on the BSE.
