The NBFC said in a statement that Bajaj Finserv signed share purchase agreements (SPAs) with Allianz SE to acquire a 26 per cent stake in the two insurance joint ventures, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC), for Rs 24,180 crore.
Bajaj Finserv (photo: IANS)
The NBFC said in a statement that Bajaj Finserv signed share purchase agreements (SPAs) with Allianz SE to acquire a 26 per cent stake in the two insurance joint ventures, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC), for Rs 24,180 crore.
With the acquisition, Bajaj Group’s stake in the two insurance ventures will increase to 100 percent from 74 percent. The group will acquire the 26 per cent stake in BALIC for Rs 10,400 crore and in BAGIC for Rs 13,780 crore.
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“Bajaj Finserv would be acquiring from Allianz, 11,13,295 equity shares of INR 10 each in BAGIC at a price of INR 4,808.24 per share and 15,22,161 equity shares of INR 10 each in BALIC at a price of INR 2,654.12 per share, amounting to 1.01 per cent equity stake in each of the companies, together with all rights, title, benefits, and interest therein, as per the SPAs executed with Allianz,” the statement said.
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The statement further said the 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1 per cent and the reclassification of Allianz from being a promoter to an investor.
“Together with Allianz, we have built two of the strongest insurance companies in India, with a combined premium exceeding Rs 40,000 crore, while maintaining industry-best solvency margins. We remain committed to creating better access to insurance in India, greater financial resilience, and a superior experience for our customers,” Sanjiv Bajaj, chairman and managing director of Bajaj Finserv.
“Given the advantage of single ownership in both companies, we are confident that the acquisition will become a big driver of value for our stakeholders in the years to come,” he added.
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