Zurich Insurance to acquire 70% stake in Kotak General for Rs 5,560 crore | Company News – Business Standard

Private sector lender Kotak Mahindra Bank on Friday informed the exchanges that Zurich Insurance will acquire a 70 per cent stake in the bank’s general insurance arm, Kotak Mahindra General Insurance, for Rs 5,560 crore, in a single tranche.

In November 2023, the bank had announced the sale of a 51 per cent stake in Kotak Mahindra General Insurance to Zurich Insurance for Rs 4,051 crore through a combination of fresh capital infusion and share purchase, followed by a 19 per cent stake sale within a period of three years.

According to the exchange filing on late Friday, “The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire a 70 per cent 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 (‘Proposed 70 Per Cent Acquisition’).”

The lender also added that other terms of the stake acquisition remain the same.

The proposed 70 per cent acquisition is subject to regulatory approval from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI).

In February 2024, the bank had received approval from the Competition Commission of India (CCI) for the 70 per cent stake sale.

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First Published: Feb 23 2024 | 10:56 PM IST