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.
The cases of Coronavirus (Covid-19 Cases in India) are increasing continuously in the country. In
After Sushma Swaraj, Sheila Dixit, and Atishi, Delhi can once again get a woman chief minister. B
Gujarat: Black flags shown to Kejriwal and Mann in Navsari, Modi-Modi slogans
Black flags were shown by Bharatiya Janata Party (BJP) supporters to Delhi Chief Minister Arvind
Allu Arjun's children Ayaan and Arha were spotted being taken to a safe place hours after the att
Across the country, the New Year 2026 is being welcomed with joy and hope. People are greeting ea
The first phase of elections in Jharkhand is on Wednesday (November 13). In the first phase, voti
A new sub-form that increases corona infection again in the UK and America has also appeared in s
'After Rohit Sharma, Rishabh Pant can become the future captain of India'; Arun Lal has predicted
After scoring a century in the third ODI against England, wicket-keeper batsman Rishabh Pant is b
Double blow to Pakistan, Turkey also trapped; who will save now
The Financial Action Task Force (FATF) has decided to keep Pakistan on the gray list. Along with
America has once again made a statement after US President Joe Biden called Pakistan the most dan
