India-based giant HDFC Life Insurance Company has agreed to acquire 100% of the share capital of Exide Life Insurance Company for a total consideration of INR66.8bn (£663m, $915m, €773m).
Of the total sum, INR7.2bn will be paid in cash, and the remaining balance via 8.7 million of equity shares valued at INR685 each.
The completion of the deal is subject to regulatory approval. There will be a Exide Life shareholder vote for the approval of the deal on 29 September 2021.
Deepak Parekh, chairman of HDFC Life, said: “This is a landmark transaction, first of its kind, in the Indian life insurance space. It would enhance insurance penetration and further our purpose of providing financial protection to a wider customer base.”
Vibha Padalkar, managing director and chief executive of HDFC Life, added: “We believe that this amalgamation can result in value creation for customers, employees, shareholders and distribution partners.
“It gives us an opportunity to realise synergies arising out of complementary business models, and further bolster our proprietary distribution network.”
