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

Pakistan Petrol Price Hike: Petrol and diesel are costlier by Rs 30 in Pakistan, know the price of one liter of oil

Diesel-Petrol has become costlier by Rs 30 per liter in Pakistan from midnight tonight. Pakistan'

Retail Inflation: India tops the 12 major countries in retail inflation, and aims to increase rates worldwide

India remains at the top of the world's top 12 countries amid the ever-increasing challenge on th

First UNSC Resolution on Myanmar: Demand for the immediate end of violence and release of 'Aung San Suu Kyi'

A UN Security Council resolution on Wednesday (local time) urged Myanmar's junta to "immediately

Ranbir-Alia has seen twinning in black look: The joy of 'Brahmastra' box office success seen on their faces

Bollywood actors Ranbir Kapoor and Alia Bhatt's film 'Brahmastra' is seeing a great performance a

ED called Rahul again today: The agency has questioned 42 hours in 4 days, the investigating officer was not satisfied with many questions

The Enforcement Directorate (ED) on Tuesday called Rahul Gandhi again for questioning in the Nati

IND vs AUS: Australia trampled India and turned the pages of history, did this big feat in ODI cricket

In the second ODI played in Visakhapatnam, the Australian team created history by defeating the I

Bholaa Box Office Day 6: Ajay Devgan's Bholaa manages to create speed at the box office, the collection crosses 50 crores

Bholaa Box Office Collection Day 6: Ajay Devgn's Bholaa finally gets a chance to celebrate. Bhola

Got a finisher like Dhoni: Badoni won Lucknow by hitting a six against Delhi, also finished the match against Chennai

Lucknow's Ayush Badoni scored 10 runs in 3 balls in the match against Delhi on Thursday, hitting

NEET UG Paper Leak: Supreme Court issues notice to NTA in NEET case, says it will have to respond

Students are very angry about the rigging of the NEET 2024 result. Now the matter of irregulariti

MS Dhoni Case: Why did Dhoni complain against his friend, money did not go from his account, then how did the fraud of Rs 16 crore happen?

Former Indian captain Mahendra Singh Dhoni has filed a case of fraud of Rs 16 crore against his f

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