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

Kartavya Path Inauguration: PM Modi will inaugurate the dusty path in Delhi today, traffic will remain closed on these 10 routes

Prime Minister Narendra Modi will inaugurate a part of the Center's priority Central Vista projec

Reliance Succession Plan: Mukesh Ambani can make a big announcement regarding succession, the 45th AGM today

The country's largest private company Reliance Group's AGM is to be held on Monday. The eyes of t

Why were Lalu and Nitish fielded in the by-elections for two assembly seats in Bihar?

The victory or defeat of any party in the by-elections to be held on October 30 at Tarapur and Ku

Delhi Weather: Mercury dropped to 4.9 degrees in Delhi, Friday morning was the coldest of the season; Winter will wreak havoc after 18

Cold has been wreaking havoc in Delhi for the last few days. The same harshness of winter continu

Oxford Hindi word of the year became self-reliance, know why this word became so special

Oxford has chosen the term 'Self-reliance' as the Oxford Hindi Word of the Year 2019. Oxford says

Ayurvedic medicine Ayush-64 effective in the treatment of corona, 21 out of 30 patients in the trial were cured on the fifth day

Corona patients have seen good results of Ayurvedic medicine 'Ayush-64'. In the clinical trial he

Tibetans ready to engage in dialogue with China: Sangay

Dharamsala, March 10 (IANS) Envoys of Tibetan spiritual leader the Dalai Lama are ready to enga

1 needle, 1 syringe, 40 times: Vaccine is given to 40 children with a single syringe, now they are at risk of hepatitis; Will be under observation for 3 months

A vaccination camp was organized for children in a private school in Sagar, Madhya Pradesh. For t

Intelligence report claims - Russia conspired to defeat Joe Biden in US presidential election

In the US, the intelligence report about the role of Russian President Vladimir Putin in last yea

UPMSP Result 2023: Practical of students who did not miss the result from today, high school and inter results before this date

UPMSP 10th, 12th Result 2023: On the one hand, in a fake official release viral on social media,

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