
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.
Former Prime Minister of Pakistan Imran Khan was arrested from the High Court of Islamabad on Tue
School Closed News: Schools closed in many districts due to heavy rains in UP-Uttarakhand
Due to the moist winds coming from the Bay of Bengal and the Western Disturbance becoming active
A Patient Recovered From Coronavirus Shares How To Handle It..
37 वर्षीय, जिनके पास बायो इंजीनियरिंग
Farmers agitating against agricultural laws will take out a tractor rally on 26 January. Against
What will the world be like after defeating Corona? PM Modi said on the basis of words AEIOU
New Delhi: What will the world be like after defeating the coronavirus? How will there be working
Waqf Amendment Bill: The first meeting of the Joint Parliamentary Committee (JPC) constituted on
A controversial incident has come to light amid increasing cases of atrocities on minority Hindus
On Friday, the news went viral rapidly, which worried the fans of Bollywood's Shahenshah Amitabh
Digital revolution: Metaverse to replace Zoom meetings, tech companies vying for investment
One thing is on everyone's lips these days in California - the next war in Silicon Valley will be
Weather Update Today: While there is bright sunshine in many places including Delhi and Uttar Pra