Bajaj Finserv Ltd. on Thursday ended its 24-year joint venture with German major Allianz SE after acquiring their 23% stake in the insurance subsidiaries for Rs 21,390 crore.
The Bajaj Group bought out Allianz’s stake in Bajaj General Insurance and Bajaj Life Insurance for Rs 12,190 crore and Rs 9,200 crore respectively.
The acquisition takes the ownership of the Mumbai-based conglomerate in both insurance companies to 97% from 74%, giving Bajaj Finserv complete control of the insurance companies with 75.01% stake, according to a statement.
The transfer of Allianz’s remaining 3% stake is expected to be completed by July through a proposed buyback of shares by the insurance companies, subject to applicable law and necessary approvals.
If the buyback is completed, the stake of Bajaj Finserv is expected to go up to approximately 77.3%, the statement added.
“The acquisition provides us strategic flexibility to access new markets, introduce new products, build scale and advance growth as insurance penetration in India is set to grow exponentially over the next 2 decades,” said Sanjiv Bajaj, chairman and managing director of Bajaj Finserv.
. Read more on Business by NDTV Profit.