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

Action on Delhi nuisance: sedition case registered against those who committed violence in Red Fort; Lookout notice issued against farmer leaders

The police are in action for the second consecutive day on the violence that took place on Januar

Kanpur Violence: BJP leader arrested for posting objectionable post, commented on Facebook and Twitter

BJP leader Harshit Srivastava alias Lala has been arrested by Colonelganj Police for posting prov

The second wave of the Corona epidemic, why it wreaked so much havoc on India?

In early March this year, Health Minister Harsh Vardhan announced that the Covid-19 epidemic in I

Jawan Netflix: Fans got a gift on Shahrukh Khan's birthday, Jawan was released on OTT

Jawan OTT Release On Shah Rukh Khan's Birthday: This year's best film 'Jawan' of Bollywood mega s

Sanatan Dharma: An attempt was made to insult Sanatan Dharma, Rahul Gandhi and Uddhav Thackeray are sitting silent - Anurag Thakur

Union Minister Anurag Thakur on Monday (September 11) once again cornered the opposition over the

India Canada Row: From Trudeau's absurd words to India's action... understand in 10 points what has happened so far

Hardeep Singh Nijjar, a resident of Bharsinghpur village in Jalandhar, Punjab, lived in Surrey, C

Parliament Winter Session: Agriculture Law Return Bill passed in Parliament, Rahul attacked the Centre, said - Government is afraid of discussion

Congress leader Rahul Gandhi spoke to the media after the agriculture law withdrawal bill was pas

The rural economy picks up pace: Increase in employment and sales of vehicles in the country shows signs of increasing demand

The rural economy of the country is making a comeback. According to a report by American financia

Awareness most important for cleanliness drive: Naidu

New Delhi, Feb 12 (IANS) Generation of awareness for behavioural change towards cleanliness and

Himachal Election: Congress high command leaves for Shimla, called MLAs to one place, preparing to send them to Chhattisgarh

In Himachal Pradesh, the high command has started formulating the next strategy as the initial tr

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