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

395th birth anniversary of Maratha Empire founder Shivaji Maharaj: PM Modi, Amit Shah and many other leaders paid tribute

Today is the 395th birth anniversary of Chhatrapati Shivaji Maharaj, the founder of the Maratha E

Neeru Bajwa distanced himself from Sardaar Ji 3 amidst the controversy. Deleted the trailer and song, and also unfollowed Hania Aamir!

Neeru Bajwa and Diljit Dosanjh starrer film Sardaar Ji 3 has been embroiled in controversies sinc

Ram Mandir: VVIP will attend the consecration of Ram Lalla, A special corridor will be built for his arrival; security will be tight

The process of implementing the instructions given in the review meeting of Chief Minister Yogi A

Prakash Singh Badal: Chautala family expressed grief, Abhay Singh said- 'The head of our family was former CM

The Chautala family of Haryana, which has close ties with the Badal family, has expressed grief o

Detonators, ammonium nitrate... how did the explosion near the Red Fort happen? Links to the Faridabad terrorist module were also connected.

The blast in front of the Red Fort in Delhi has shaken the entire nation. Police are on high aler

World Food Safety Day: Dietician told- These things are very harmful to immunity protect

Our immunity has a special role in keeping the body healthy and protecting it from the risks of d

China's poll will open, UNHRC High Commissioner to visit Xinjiang after Olympics

China has permitted the United Nations Human Rights Council (UNHRC) to visit the Xinjiang region.

Hyper-growth in tech startups in India: Economic Survey

New Delhi, Feb 27 (IANS) The information technology (IT) and IT-enabled services (ITeS) sector,

Elections are over, now inflation will be settled: A big increase in the prices of petrol and diesel is fixed, cooking will also be expensive; Know what will change?

Elections are over in 5 states including UP, Punjab, Uttarakhand, Manipur, Goa. After two days i.

Quad Meeting: Meeting of Foreign Ministers of Quad countries, Jaishankar said – The list of terrorists should not be politicized

External Affairs Minister Dr. S. Jaishankar, US Secretary of State Antony Blinken, Japanese Forei

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