CHENNAI: Apollo Energy Company Ltd., part of Apollo Hospitals Group, on Monday said its board has approved divestment of 23.3 per cent stake in Apollo Munich Health Insurance Company Limited for about Rs 163.50 crore.
The stake will be picked up by its joint venture partner Munich Re of Germany. The proposed transaction values Apollo Munich at Rs 703 crore. Subject to regulatory approvals, the deal is expected to be completed by Q1- 2016.
Following the deal, Apollo’s stake stands at 51.1 per cent down from 74.4 per cent. Correspondingly, Munich Re’s stake moves up to 48.7 per cent. The remaining 0.2 per cent will be held by employees.
Prathap C Reddy, Chairman, Apollo Hospitals, said, “Insurance is a key element for making quality healthcare facilities accessible to the masses. The show of confidence from our JV partner will go a long way in helping the Group achieve its vision of Healthcare for All.”
Shobana Kamineni, Whole-Time Director, Apollo Munich and Vice-Chairperson Apollo Hospitals, said, “The transaction highlights the strong position of Apollo Munich as one of India’s leading and most trusted standalone Health Insurance Company.”