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HDFC Life acquires Exide Life Insurance for Rs 6,687 cr

HDFC Life acquires Exide Life Insurance for Rs 6,687 cr

While the insurer said that the acquisition is expected to complete by June 30, 2022, it added that the completion of the acquisition is subject to customary conditions

HDFC Life buys Exide Life Insurance HDFC Life buys Exide Life Insurance

HDFC Life stated on Friday that it has acquired 100 per cent of the share capital of Exide Life Insurance Company Ltd for Rs 6,687 crore. Out of this over Rs 725 crore will be paid in cash and the balance by way of issue of over 8.70 crore equity shares at an issue price of Rs 685 per share to holding company Exide Industries Ltd. Exide Industries divested the entire equity shareholding held by the company in Exide Life.

While the insurer said that the acquisition is expected to complete by June 30, 2022, it added that the completion of the acquisition is subject to customary conditions such as receipt of regulatory and other such approvals. Once the deal is completed Exide Life Insurance will be merged into HLIC, the process for which will be started after the completion of the acquisition.

“We believe that the transaction can result in value creation for customers, employees, shareholders and distribution partners. This transaction will provide an opportunity for HLIC and the Target (Exide) to realise synergies arising out of complementary business models,” stated HDFC Life.

“The Company will obtain all approvals as may be required under applicable laws from any regulatory authority for completion of the proposed transaction, including from the Insurance & Regulatory Development Authority of India and the Competition Commission of India,” it said.

Exide Life Insurance was incorporated on December 13, 2000. It had a turnover of Rs 2,886 crore in FY19, Rs 3,220 crore in FY20 and Rs 3,325 crore in FY21.

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