Prism said it has entered a share purchase agreement whereby it would sell its 51 per cent stake in Raheja QBE General Insurance Company Ltd to QBE for Rs 324 crore.
The Proposed Transaction will result in the termination of the Company’s joint-venture with Australia’s QBE Group in the general insurance business in India and existing Shareholders Agreement. Upon completion of the Proposed Transaction, RQBE will cease to be a subsidiary of the Company, Prism said in a stock exchange filing.
The total consideration to be received by the company for the proposed transaction is subject to certain adjustments on the completion of the proposed transaction, in the manner set out in the share purchase agreement, it said.
Meanwhile, QBE Insurance Group, an international general insurance and reinsurance firm headquartered in Australia, said it is set to become the sole owner and shareholder of Raheja QBE, subject to regulatory approval.
This move follows 18 years of joint ownership with Prism Johnson and underscores QBE’s commitment to the Indian insurance market, it said.
India recently allowed 100 per cent foreign direct investment in the insurance sector. There has been lot of consolidation in the insurance space. Allianz announced that it is selling stakes in its life insurance and general insurance ventures with Bajaj Group. Piramal Finance Ltd said it has agreed to sell its entire 14.72 per cent stake in Shriram Life Insurance Company Ltd to Sanlam Emerging Markets (Mauritius) Ltd. for Rs. 600 crore.
