HDFC Life completes acquisition of Exide Life Insurance Company, Merger will happen shortly
Shares were issued at an issue price of Rs 685 per script and cash settlement of Rs 726 crore
New Delhi:
HDFC Life Insurance has completed its acquisition of Exide Life by handing over 8.7 crore shares of the company to Exide Industries, the insurer said on Saturday. The Board of Directors’ Fundraising Committee reviewed the January 1, 2022 resolution, allocating 8,70,22,222 shares of the company to Exide on an incentive basis, and the company completed the purchase. 100% stake in Exide Life from Exide, HDFC Life Insurance said in a regulatory filing.
Accordingly, Exide Life became a wholly owned subsidiary of the company effective immediately – from January 1, 2022, it said. The deal was announced in September 2021. Shares were issued at an issue price of Rs 685 per script and a cash payment of Rs 726 crore for a total of Rs 6,687 crore.
“The acquisition will accelerate the scaling of the exclusive channels, strengthen the presence in South India and across the tier 2 and tier 3 locations. Exide Life’s merger into HDFC Life will be held soon. implemented”, HDFC Life said.
With this, Exide Industries now holds a 4.1% stake in HDFC Life. Exide Life’s agent-based distribution model, strong presence in South India and experience in secondary and tertiary locations complement HDFC Life and will help expand the market and strengthen its distribution. its exclusive distribution.
Vibha Padalkar, MD and CEO, HDFC Life, said, “We are extremely pleased to welcome the Exide Life family to us. This first acquisition reflects our intention to build an India. stronger by delivering safety net financing to more people”.
She said the acquisition is an important milestone towards the company’s strategic goal of bringing more people into the financial protection sector. She also thanked outgoing MD and Exide Life CEO Kshitij Jain for his outstanding leadership in helping to build a strong organization.
