New Delhi, Oct 13 (PTI) Private sector Kotak MahindraBank today said it has completed acquisition of 26 per centstake in its life insurance subsidiary from Old Mutual Plc fora value of over Rs 1,292 crore, making the insurance company awholly-owned arm.
In April this year, the bank had entered into a sharepurchase agreement to buy 13,26,75,452 equity shares or 26 percent of of Kotak Mahindra Old Mutual Life Insurance Ltd(KMOM), a subsidiary of the bank, from Old Mutual Plc for Rs1,292.70 crore to be payable in cash.
"As a follow up to that, we now wish to inform you thatthe bank has completed this transaction for acquisition onOctober 13, 2017 and KMOM is now wholly owned subsidiary (100per cent) of the bank," it said in a regulatory filing.
The life insurer had reported profit of Rs 300 crore lastfiscal. The overall networth of the business stood at Rs 1,825crore as of March 2017.
Company's new premium income in September this fiscalstood at Rs 261.91 crore, slightly down from Rs 263.47 crorein the same period a year ago.
Kotak Mahindra Bank shares closed 2.2 per cent up at Rs1,081.70 on BSE today. PTI KPMMR.
This is unedited, unformatted feed from the Press Trust of India wire.