Edelweiss Financial Services on Friday said it will sell its 70 percent stake in Edelweiss Gallagher Insurance Brokers for Rs 307.60 crore. Edelweiss Financial Services said in a regulatory filing that Arthur J Gallagher & Co, which held a 30 percent state in the insurance broking business, will acquire all the shares, taking its stake to 100 percent.
The company said 37,00,000 equity shares of Rs 10 each representing 70 percent of the paid-up share capital of Edelweiss Gallagher Insurance Brokers held by the company will be sold for a consideration of Rs 307.60 crore, in one or more tranches.
In addition to the sale consideration, Edelweiss Financial Services will also be entitled to receive a deferred contingent consideration based on the future revenue of Edelweiss Gallagher Insurance Broker, in the manner set out in the agreement.
Rashesh Shah, Chairman, Edelweiss Group said the sale will provide the company "with the flexibility to reallocate capital and invest in scaling up our fast-growing life and non-life insurance businesses, making this a win-win for both of us."
Vyvienne Wade, Gallagher Chairperson of Global Broking in Europe, Middle East, and Asia said "we view India as a key and strategic market for the insurance industry and for Gallagher, given its scale and growth potential, and we see many interesting opportunities for further development of the business." The transaction is subject to receipt of regulatory and other appropriate approvals (including approval of the Insurance Regulatory and Development Authority of India) and fulfilment of the obligations/conditions prescribed in the agreement.
Gallagher and Edelweiss had entered into a partnership in May 2019, with Gallagher acquiring a minority shareholding in the insurance broking business. Edelweiss Gallagher Insurance Brokers offers general insurance solutions to clients across India.
-With PTI inputs
First Published: Jul 2, 2021 5:14 PM IST
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