New Delhi: Housing Development Finance Corporation (HDFC) on Tuesday announced that it has acquired majority stake in Apollo Munich Health Insurance for Rs 1,346.84 crore.
Apollo Munich will be merged with HDFC ERGO General Insurance Company Limited, creating a business of over Rs 10,807 crore, HDFC said.
In a BSE filing, HDFC said that the company has entered into agreements for acquiring up to 51.2 percent of the equity share capital of Apollo Munich Health Insurance Company Limited ( Apollo Munich), from Apollo Energy Company Limited, Apollo Hospitals Enterprise Limited, the subscribers to the memorandum of association of Apollo Munich and certain other shareholders.
"HDFC Ltd will acquire 50.8 percent stake in Apollo Munich Health Insurance Ltd for Rs 1,336crore from Apollo Hospitals Group and 0.4 percent stake held by a few employees for a consideration of Rs 10.84 crore, the company added.
“The Apollo Munich Proposed Acquisition and the Proposed Merger is subject to requisite approvals including from the National Housing Bank (NHB), Insurance Regulatory and Development Authority of India (IRDAI), Competition Commission of India (CCI) and the concerned National Company law Tribunal (concerning the Proposed Merger),” HDFC said.
HDFC Ergo is a joint venture between HDFC Ltd and ERGO International AG, a Germany-based company, which is part of the Munich Re Group. HDFC holds 51 percent while ERGO 49 percent in the JV.
“This transaction will strengthen the HDFC group’s commitment tothe 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, benefiting their 1.2 crore policy holders,” Deepak Parekh, Chairman of HDFC Ltd and HDFC ERGO General Insurance said.