Housing Development Finance Corporation Ltd (HDFC) has received approval from Insurance Regulatory and Development Authority of India (IRDAI) to acquire 51.2 percent stake in Apollo Munich Health Insurance, a joint venture between Apollo Hospitals and German reinsurer Munich Re Group.
In a stock exchange filing, HDFC informed its board's decision to acquire up to 51.2 percent of equity share capital of Apollo Munich Health Insurance Company Limited and merger of Apollo Munich with HDFC ERGO General Insurance Company Limited has received requisite approvals from competition commission of India (CCI), Reserve Bank of India and the last being from IRDAI on 1 January 2020.
"Post the completion of the proposed acquisition, Apollo Munich will be merged with and into HDFC Ergo, subject to approval from the Mumbai bench of National Company Law Tribunal," the statement added.
It further said, "We further wish to inform you that in accordance with the SPA, the acquisition of shares by HDFC is expected to be completed by January 9, 2020."
HDFC will be paying Rs 1,336 crore to Apollo Hospitals for the deal. An additional Rs 10.84 crore will be paid to employees of Apollo Munich Health Insurance Company Ltd to purchase their 0.4 percent stake in the company. The total size of the deal is valued at Rs 1,347 crore.