NEW DELHI: Private lender Kotak Mahindra Bank on Friday informed the exchanges that Zurich Insurance Company will acquire 70% stake in Kotak Mahindra General Insurance Company for Rs 5,560 crore. Kotak Mahindra General Insurance Company is a 100% subsidiary of Kotak Mahindra Bank.
“The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately Rs 5,560 Crore, instead of the proposal announced in our earlier disclosure,” Kotak Mahindra Bank said.
The other terms of the transaction remain unchanged, the lender said. The Proposed 70% Acquisition would be subject to fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India.
Earlier in the month, the Competition Commission of India (CCI) gave its green light to the acquisition. In November 2023, it was first announced that Zurich Insurance Company will invest a sum of around Rs 4,051 crore or $500 million to acquire a 51% stake in Kotak General Insurance. Zurich Insurance was then expected to acquire an additional stake of 19% within a period of three years from its initial acquisition. The proposed transaction had then valued Kotak General Insurance at around Rs 7,943 crore on a post money valuation.