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

Jerusalem and Tel Aviv were shaken by the sound of explosions, Iran again attacked Israel after Trump's ceasefire announcement; 7 killed.

The Israeli army on Tuesday warned its citizens that missiles have been fired from Iran (Israel-I

Defense News: Defense Minister Rajnath Singh said, 'The war is fought with the enemy's army, not with their citizens'

Defense News: There is war with the army of the enemy country, not with their common citizens. Th

Muslim side can file a petition in HC today in the Sambhal Masjid case, demanding to cancel the survey.

Today, the Muslim side can file a petition in the Allahabad High Court in the matter related to t

SP will oppose the Waqf Amendment Bill in Parliament today, Congress-AIMIM have already made their stand clear

A bill to amend the law governing the Waqf Board will be introduced in Parliament on Thursday. Un

Odisha monk campaigns to save indigenous cow

Puri (Odisha), March 25 (IANS) A monk in Odisha has launched a campaign to save the state's nati

Canada: 'Khalistan ideology was allowed to flourish', Indian-Canadian community spoke about the current situation in Canada

Tension is increasing between India and Canada over the killing of Khalistani terrorist Hardeep S

Mohan Bhagwat: 'There should be three children in a Hindu family; if there are fewer children, then the society vanishes, ' the statement of RSS chief Bhagwat

RSS chief Mohan Bhagwat, while advocating three children for a couple, said that in a society in

Mutual Fund: Will give relief from heavy expenditure on children's education, can invest in these three funds

Teaching children has become very expensive. Amidst the ever-increasing inflation, it is a big ch

Today's Celebrity Lifestyle: Samantha Ruth Prabhu or Naga Chaitanya Who Earns More? Know the net worth of both

Samantha Ruth Prabhu and Naga Chaitanya are the famous stars of South Indian cinema. Both were on

Corona Can't breath in India, the number of people who will be cured soon will be more than ill!

New Delhi

There is a war in the country against the corona epidemic. Every state has made

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