One97 Communications stated on Sunday in a BSE filing that its share purchase agreement to acquire 100 per cent of Raheja QBE General Insurance Company Limited has been terminated as its transaction could not be completed within the agreed time period.
“Our associate company, Paytm lnsuretech Private Limited, had entered into a share purchase agreement to acquire 100% of Raheja QBE General Insurance Company Limited.
As the share sale and purchase transaction has not been consummated within the time period envisaged by the parties under the said agreement, the agreement has automatically terminated,” stated the company in a filing.
The company stated that it is still bullish on its general insurance roadmap. “Paytm remains bullish on its roadmap for general insurance, and we intend to seek requisite approvals for a new general insurance license, wherein we hold a 74% majority shareholding upfront,” it said.
The deal was inked on July 6, 2020. Paytm’s deal was touted to mark its entry into the general insurance space to help it “democratise general insurance services” in India.
Prism Johnson that agreed to sell its stake stated when the deal was signed: "The Board of Directors of the Company at its meeting held today, has approved divestment of its entire holding of 51% of the paid-up equity share capital in Raheja QBE General Insurance Company Limited ('RQBE'), a material subsidiary, to QORQL Private Limited, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications Limited), for an aggregate consideration of Rs 289.68 crore.”
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