Mumbai, June 19
Mortgage major HDFC today announced acquisition of majority stake in Apollo Munich Health Insurance from the Apollo Hospitals Group for Rs 1,347 crore and will merge the company with its arm HDFC Ergo General Insurance.
HDFC will acquire 50.8% from the Apollo Hospitals group for Rs 1,336 crore and will buy out the 0.4% stake being held by the employees for Rs 10.84 crore.
German insurer Munich Health will pay Rs 294 crore to Apollo Hospitals Enterprise and Apollo Energy for terminating their joint venture, HDFC chairman Deepak Parekh said.
The merged entity will have a combined market share of 6.4% in the non-life insurance industry, with 308 branches and a business of Rs 10,807 crore, he said.
“The transaction will strengthen our commitment to the growing health insurance segment. The combined expertise of HDFC Ergo and Apollo Munich will result in greater product innovation, wider distribution and enhanced servicing capabilities,” Parekh told reporters.
“We are sure that the new shareholder will continue to nurture and scale the business to greater heights and confident that all stakeholders will be positively impacted,” Shobana Kamineni, chairperson of Apollo Munich Health Insurance and vice-chairperson of Apollo Hospitals Enterprises, was quoted as saying in a statement issued by HDFC. — PTI
- HDFC will buy 50.8% stake from the Apollo Hospitals Group for Rs 1,336 crore and will buy out the 0.4% stake being held by the employees for Rs 10.84 crore
- German insurer Munich Health will pay Rs 294 crore to Apollo Hospitals Enterprise and Apollo Energy for terminating their joint venture
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