HDFC Life has announced to acquire a 100 per cent stake in Exide Life Insurance Company in a stock and cash deal, for Rs 6,887 crore. Subsequently, Exide Life will be merged with HDFC Life, subject to regulatory approvals. Exide Life is a wholly-owned subsidiary of battery maker Exide Industries. This acquisition will mark one of the first and the largest acquisitions in the life insurance space.
About the deal:
- From the total deal value of Rs 6,887 crore, HDFC Life will pay Rs 725 crore in cash, while the balance amount will be in form of shares.
- HDFC Life will issue 87.02 million equity shares of the face value of Rs 10 at a price of Rs 685 per share to Exide Industries Limited.
- Post the acquisition, Exide Industries will hold a 4.1 per cent stake in merged HDFC Life and mortgage lender HDFC Ltd will hold 47.9 per cent. Currently, HDFC Ltd. holds a 49.9 per cent stake in HDFC Life.
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