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.

Other news

Sayeed stakes claim to power in Kashmir

Jammu, Feb 27 (IANS) Peoples Democratic Party (PDP) patron, Mufti Muhammad Sayeed Friday staked

Umesh Pal Case: Fear was visible on the face of the mafia! Atiq's convoy stopped in Rajasthan, the sight looked something like this

In the Umesh Pal kidnapping case, the Prayagraj MP-MLA court on Tuesday sentenced former MP and m

Bilawal Bhutto: SCO Meeting Jaishankar lashed out in the presence of the Pakistani Foreign Minister, saying – cross-border terrorism is not tolerated

The meeting of the SCO Council of Foreign Ministers started on Friday in Panaji, Goa. Before the

Coronavirus UPDATES: Cases in India rise to 873, death toll at 19

कोरोनवायरस वायरस अपडेट: स्वास्थ्य औ�

Manipur Violence: Curfew relaxation extended in Imphal districts, security forces conduct search operation

Manipur Violence: Given the improvement in the law and order situation, the Manipur government ha

Confrontation: Resolution passed in Bengal Assembly against the extension of the jurisdiction of BSF, BJP created a ruckus

Tension continues between the Central Government and West Bengal Chief Minister Mamata Banerjee o

Tirupati Laddu Case: Hearing on Tirupati Laddu dispute in Supreme Court today, petitioner demands CBI investigation

The Supreme Court will hear on Monday several PILs seeking intervention in the matter of adultera

England the Perennial Bridesmaid (World Cup Team Profile)

Melbourne, Feb 11 (IANS) The England cricket team has earned the tag of 'always a bridesmaid an

Virat-Gambhir Interview: 'We came together to end all the masala', there was a lot of fun and laughter in Virat Gambhir's conversation

The Board of Control for Cricket in India (BCCI) has shared a video clip of a conversation betwee

Crowds enter madrassa in Karnataka on Dussehra: worshiped with slogans of Jai Shri Ram, 4 arrested; Home Minister said – it happened in misunderstanding

Some people participating in the Dussehra rally in the Bidar district of Karnataka barged into an