Ace investor Rakesh Jhunjhunwala and a consortium of private equity firms including WestBridge Capital and Madison Capital have put their bets on Star Health Insurance. The financial consideration of the deal amounts to as much as Rs. 6,500 crore as per the Bloomberg report estimates.
Jhunjhunwala will be the promoter of the company with 35% stake. The consortium has inked a definitive agreement with Star Health and Allied Insurance company shareholders for purchasing their shares in South-India based standalone health insurance company, Star Health.
As per the leading news channel report, other new owner of the company will include Safecrop Holdings that comprises of WestBridge AIF, Rakesh Jhunjhunwala, Madison Capital as per the sources.
ICICI Lombard General Insurance has also made the bid for the deal but before Jhunjhunwala their bid worth Rs. 5800 crore fell short.
The shareholders of Star Health include Star Health Investments and funds managed or advised by ICICI Venture, Tata Capital and Apis Partners. The transaction is subject to regulatory and certain other approvals, a statement by Star Health said.