Zurich Insurance to pick up 51% stake in Kotak General Insurance worth Rs 4,051 crore

2 Nov 2023 , 11:50 AM

Kotak Mahindra Bank stated on Thursday that it has reached a deal to sell a 51% share in its subsidiary Kotak Mahindra General Insurance to Zurich Insurance Company for approximately Rs 4,051 crore.

The investment would be made up of both new growth capital and share purchases.

Zurich will also acquire a 19% share in the company within three years after its first purchase. According to the private sector lender, Zurich’s investment is the single largest by a global strategic insurer in an Indian non-life insurer.

When Zurich purchases 51% of the insurance firm, it will no longer be a subsidiary of the bank. On a post-money basis, the proposed acquisition values Kotak General Insurance at about Rs 7,943 crore, subject to normal closing adjustments.

The transaction comprises an investment of new growth capital of approximately Rs 1,609 crore in Kotak General Insurance.

The transaction is subject to standard previous conditions, including as regulatory clearances from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India, and the Competition Commission of India.

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