Aditya Birla Group said that it has agreed to sell its insurance broking business, Aditya Birla Insurance Brokers Ltd (ABIBL), to private equity firm Samara Capital for ₹455 crore.
ABIBL specialises in providing integrated insurance broking and advisory services to companies and individuals. It also offers reinsurance solutions to insurance companies.
In a stock exchange filing, the group said the board of Aditya Birla Capital on Monday approved the sale of its entire 25,65,103 equity shares, representing 50.002% of the share capital of ABIBL to Edme Services Pvt Ltd, part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund. The announcement was made after market hours.
The remaining shares in ABIBL are held by Infocyber India, another Aditya Birla group entity.
The transaction valued ABIBL at an enterprise value of Rs 455 crore on a cash-free and debt-free basis, and subject to closing adjustments on the terms set out in the share purchase agreement (SPA), said the exchange filing.
“Further, under the SPA, the company and Infocyber may receive an additional consideration after completion of 5 (five) years from the closing which is conditional upon the fulfilment of certain conditions under the SPA,” said the filing. “The company shall be entitled to receive 50.002% of any consideration (including additional consideration) paid by the purchaser in lieu of its acquisition of 100% of ABIBL’s issued and paid-up share capital in accordance with the SPA.”
The transaction is subject to receipt of the approval of the Insurance Regulatory and Development Authority of India (IRDAI) and other regulatory and statutory approvals and is expected to be completed within 120-180 days.
Source: Economic Times