50.002% stake in Aditya Birla Insurance Brokers to be sold to Samara Capital for Rs 455 crore

28 Mar 2023 , 08:06 AM

Aditya Birla Group said on Monday that it has decided to sell Aditya Birla Insurance Brokers Ltd. (ABIBL) to private equity company Samara Capital for a price of Rs 455 crore.

ABIBL specializes in offering businesses and individuals integrated insurance brokerage and consultancy services. It also offers reinsurance solutions to insurance firms.

The group claimed in a stock exchange filing that Aditya Birla Capital’s board has approved the sale of all 25,65,103 equity shares, or 50.002% of the company’s share capital, to Edme Services Pvt Ltd, a member of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund, on Monday. After market hours, the announcement was made.

Infocyber India, a member of the Aditya Birla group, is the owner of the remaining shares in ABIBL.

According to the exchange filing, the deal gave ABIBL an enterprise value of Rs 455 crore on a cash-free and debt-free basis, subject to closing adjustments based on the conditions of the share purchase agreement (SPA).

According to the filing, ‘Moreover, under the SPA, the company and Infocyber may receive an extra consideration after completion of 5 (five) years from the close, which is conditional upon the fulfillment of specific SPA requirements.’ The purchaser is not required to purchase 100% of ABIBL’s issued and paid-up share capital in order for the firm to receive 50.002% of any price (including additional consideration) paid instead. This is stated in the Share Purchase Agreement (SPA).

The deal is anticipated to be finished within 120-180 days, subject to receiving the approval of the Insurance Regulatory and Development Authority of India (IRDAI) and other regulatory and statutory approvals.

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