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

Sayeed says Peace is must for Kashmir's Development

Jammu, March 1 (IANS) Peace is a must if Jammu and Kashmir has to develop, new Chief Minister M

People want to teach Congress a lesson, says Modi

Mysore, April 8 (IANS) BJP's prime ministerial candidate Narendra Modi Tuesday said that people

CPI announces Tamil Nadu, Puducherry candidates

Chennai, March 19 (IANS) The Communist Party of India (CPI) Wednesday announced its candidates

SBI reduced interest on savings account by 0.05%, ICICI Bank reduced 0.25%

Mumbai

State Bank of India (SBI) has reduced the annual interest rate on savings bank acc

Tax evasion cases: Court reserves order on Burman plea seeking stay

New Delhi, Feb 4 (IANS) A court here Wednesday reserved i

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