HDFC Life Insurance on Friday introduced that its board has permitted acquisition of 100 per cent stake in Exide Life Insurance Company for a complete consideration of Rs 6,687 crore, within the largest insurance coverage deal within the nation.
The acquisition will contain problem of 8.70 crore shares at a difficulty value of Rs 685 per share and a money payout of Rs 726 crore. The course of for merger of Exide Life into HDFC Life might be initiated on completion of the acquisition. The whole course of, together with the acquisition and subsequent merger, is topic to acquiring the related regulatory and different approvals.
HDFC Life shares closed 3.21 per cent decrease at Rs 734.45 on the BSE on Friday. The embedded worth of Exide Life, as of June 2021, is Rs 2,711 crore and has been reviewed by Willis Towers Watson Actuarial Advisory LLP.
Deepak S Parekh, chairman, HDFC Life mentioned, “This is a landmark transaction, first of its kind, in the Indian life insurance space. It would enhance insurance penetration and further our purpose of providing financial protection to a wider customer base.”
Rajan B Raheja, vice chairman of Exide Industries and chairman of Exide Life Insurance Company, mentioned, “The focus of Exide Industries has always been to enhance the value for its stakeholders. The proposed transaction is another step taken by Exide to meet above stated objective.”
