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.

Other news

Countdown of lockdown starts, country will gallop from green zone

In the first phase of lockdown, where PM Modi gave the mantra of 'Jaan hai to jahan hai', in the

Weather Update today: Cold knocked in North India, heavy rain may occur in these states

While cold has knocked in North India, it is raining heavily in many states of South India includ

Sachin Tendulkar played street cricket in the valleys of Kashmir, everyone likes this captivating video.

Indian team's great batsman Sachin Tendulkar is on his first visit to Kashmir. Tendulkar enjoyed

Weather Update Today: There will be a possibility of a cyclone in the Bay of Bengal, and there will be heavy rain in these states, Meteorological Department alert

Rain activities have stopped completely in most states including Delhi, and Uttar Pradesh. These

Will the G-23 still create a ruckus? Anand Sharma raised the question in front of Sonia Gandhi in the CWC meeting

Congress has fixed the date for the election of its president. This matter was discussed in the C

5% GST: Was this decision taken with the consent of the states? How is the decision of imposing a tax on the GST Council

Controversy continues over the decision to levy 5% GST on non-branded pre-labeled items for use b

Even after the agreement, the Lakhimpur Kheri case did not stop, the round of allegations and counter-allegations continued, know who said what

Despite the agreement reached between the protesters and the administration, the Lakhimpur Kheri

Big accident in Uttarakhand, so far 13 bodies have been removed from the ditch, rescue continues

Champawat Accident: A major accident happened in Uttarakhand on Monday night. Max met with an acc

The level of AQI in this city of China is 999, Bhopal in India and Lahore in Pakistan are the most toxic

With the onset of winter in the states of North India, smag has also started. Alam is that it is

China built a new village near Doklam: two years ago it was revealed in satellite images; Now houses have been built, cars are seen parked outside

China is preparing to encircle India via Bhutan. This has been revealed in satellite photos. It h