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

Coronavirus Updates: More than two thousand cases were found in the country for the fourth consecutive day, know in which states how many cases increased

The cases of Coronavirus (Covid-19 Cases in India) are increasing continuously in the country. In

Delhi New CM: Will Delhi get a woman chief minister? These four names are in the race; Know how much truth is there in this claim.

After Sushma Swaraj, Sheila Dixit, and Atishi, Delhi can once again get a woman chief minister. B

Gujarat: Black flags shown to Kejriwal and Mann in Navsari, Modi-Modi slogans

Black flags were shown by Bharatiya Janata Party (BJP) supporters to Delhi Chief Minister Arvind

Allu Arjun: After vandalism, Allu Arjun's children had to leave the house, the video is making headlines

Allu Arjun's children Ayaan and Arha were spotted being taken to a safe place hours after the att

New Year 2026 Greetings: President, PM, Rahul Gandhi, and Akhilesh Yadav extend New Year wishes, emphasizing the importance of protecting the environment.

Across the country, the New Year 2026 is being welcomed with joy and hope. People are greeting ea

Jharkhand Polls Phase-1: 1.37 crore voters, 235 candidates are crorepatis, what is special in the first phase of elections?

The first phase of elections in Jharkhand is on Wednesday (November 13). In the first phase, voti

Corona: A new sub-form of Omicron found in ten states, Insacog said - monitoring of changes in the virus

A new sub-form that increases corona infection again in the UK and America has also appeared in s

'After Rohit Sharma, Rishabh Pant can become the future captain of India'; Arun Lal has predicted

After scoring a century in the third ODI against England, wicket-keeper batsman Rishabh Pant is b

Double blow to Pakistan, Turkey also trapped; who will save now

The Financial Action Task Force (FATF) has decided to keep Pakistan on the gray list. Along with

US on Pakistan: America's advice to Pakistan, 'action on terrorist organizations is necessary for a strong partnership'

America has once again made a statement after US President Joe Biden called Pakistan the most dan

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