Sundaram Finance to buy out RSA's stake in Royal Sundaram Alliance


Posted on 18th Feb 2015 05:18 pm by mohit kumar

Chennai, Feb 18 (IANS) City-based Sundaram Finance Ltd will acquire 26 percent stake held by Britain's RSA Group in Royal Sundaram Alliance Insurance for Rs.450 crore, the company said Wednesday.

In a statement issued here Sundaram Finance said the entities - Sundaram Finance and RSA Group - have reached an agreement whereby the RSA would sell its 26 percent holding in the Royal Sundaram Alliance to Sundaram Finance for Rs.450 crore.

The overall enterprise value for the Rs.1,437-crore premium general insurer works out to around Rs.1731 crore.

In its statement RSA Group said it expects to receive cash consideration of approximately 46 million euros ($52.4 million), and the transaction is expected to result in a gain on sale of approximately 16 million euros ($18.2 million).

The non-banking finance company (NBFC) Sundaram Finance holds 49.90 percent in the Royal Sundaram Alliance, a general insurance company.

Following the acquisition, Sundaram Finance's holding in the Royal Sundaram Alliance would go up to 75.90 percent.

The rest will be held by the associates of Sundaram Finance.

"RSA Group had recently undertaken a review of their businesses globally and decided to exit non-core markets, of which India is one. While we are sorry to part company with them, we recognise that this is part of their larger global portfolio strategy," T.T. Srinivasaraghavan, managing director, Sundaram Finance was quoted as saying in the statement.

0 Like 0 Dislike
Previous news Next news
Other news

Big black marketing of oxygen gas caught in Aklimpur, three arrested

Gurugram Police and Drugs Controller's Department caught three men carrying out big black marketi

Corona Cases climb to 30 in India, PM cancels Brussels visit

Forest fires scorch over 11,000 hectares in Himachal

Shimla, March 24 (IANS) Forest fires raging across the hills of Himachal Pradesh scorched over

CBI nabs Bank Of Baroda official for graft

Mumbai, March 21 (IANS) The CBI has nabbed an assistant general manager of the Bank Of Baroda h

Distance between Nepal and India disappears, but China can again spoil the relationship

The neighboring country Nepal, which came under the guise of China, now wants to improve its rela

India vs Sri Lanka: 'Sixer King' Rinku Singh is ready to make a splash in Sri Lanka; called his parents and said - something good will happen

IPL star and Sixer King Rinku Singh is ready to rock the series starting in Sri Lanka with his ba

US Russia Talk: Top US Army officer talks to Russia's Chief of General Staff, discusses security-related issues

Top General of the US Army Mark Milley has a telephone conversation with Russia's Chief of Genera

PBKS vs MI: Suryakumar Yadav and Ishaan Kishan gave Mumbai their fifth win, Punjab bowlers bowled

Mumbai Indians registered their fifth win in the ongoing IPL season with a six-wicket win against

IT Sector Hiring: Relief news for IT professionals, companies preparing to recruit 3.6 lakhs

There is big news for IT professionals, according to a report, 3.6 lakh recruitments will be done

PM-CARES Fund: Many veterans including Ratan Tata became trustees, these industrialists got a place in the advisory group

Prime Minister Narendra Modi on Tuesday held a meeting with the Board of Trustees of the PM Cares

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash