Thursday, December 17, 2015

ERGO to increase its stake in HDFC ERGO to 49%

German insurance giant ERGO today announced that it has entered into an agreement with Housing Development Finance Corporation (HDFC) to increase its stake in HDFC ERGO to 49 per cent.

Under the agreement, ERGO will acquire 12.33 crore shares of HDFC ERGO at a price of Rs. 90.973 per share aggregating to Rs. 1,122 crore. As a result of this, ERGO’s shareholding in HDFC ERGO will increase from 25.84 per cent to 48.742 per cent, while that of HDFC will come down from 73.634 per cent to 50.732 per cent. The transaction pegs valuation of HDFC ERGO at Rs. 4,900 crore.

The transaction is subject to approvals, including approvals from the Insurance Regulatory & Development

Authority of India (IRDA), the Competition Commission of India (CCI) and the Foreign Investment Promotion Board (FIPB).

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