Zurich Insurance Company will acquire a 70 per cent stake in Kotak General Insurance Company Limited for ₹5,560 crore in a single tranche, informed Kotak Mahindra Bank in a regulatory filing to the stock exchanges on Friday, February 23. Zurich Insurance had earlier announced of an initial acquisition of 51 per cent and a remaining 19 per cent in three years. Kotak Mahindra Bank said the other terms of the transaction remain unchanged.
‘’We refer to our disclosure dated November 2, 2023, in respect of the proposed acquisition of the shares of Kotak Mahindra General Insurance Company Limited by Zurich Insurance Company Ltd, by way of initial acquisition of 51 per cent of the share capital through a combination of capital infusion and share purchase, followed by a subsequent acquisition of additional stake of 19 per cent within a period of three years from the initial acquisition to take Zurich’s shareholding to 70 per cent of the share capital of Kotak General,” said Kotak Mahindra Bank in its exchange filing.
‘’The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70 per cent stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately ₹5,560 crore, instead of the proposal announced in our earlier disclosure,” added Kotak Mahindra Bank.
‘’The other terms of the transaction remain unchanged. The proposed 70 per cent acquisition would be subject to fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India,” it added.
The deal will be the largest investment by a global insurer in a non-life insurer in the Indian market. The change in the deal’s terms will not affect Kotak General’s valuation, which was ₹7,943 crore according to the filing from November 2023. On Friday, shares of Kotak Mahindra settled 0.10 per cent lower at ₹1,724.80 apiece on the BSE.
