Regulators have allowed HDFC to acquire majority stake in Apollo Munich Health Insurance from Apollo Hospitals Enterprise Limited (AHEL) and other shareholders.
In June 2019, HDFC signed an agreement with Apollo Hospitals Group to acquire its 51.2 per cent stake in the health insurance company for Rs 1,347 crore.
In this context, agreements had been executed by and amongst, AHEL, HDFC, HDEC Ergo, Apollo Munich Health Insurance Company Limited (AMHI), Apollo Energy Company Limited (AECL), Munich Health Holdings AG and other shareholders of AMHI for and in connection with the acquisition of upto 51.2 per cent of shareholding of AMHI by HDFC from AHEL, AECL and other shareholders and subsequent merger of AMHI with HDFC Ergo.
AHEL said on Thursday AMHI, HDFC Ergo and HDFC have received requisite approvals for the said acquisition from CCI, RBI and the Insurance Regulatory and Development Authority of India (IRDAI).
On Wednesday, IRDAI granted the approval under Section 6A of the Insurance Act, 1938 for transfer of upto 51.2 per cent equity share capital of AMHI from AHEL, AECL and other shareholders to HDFC.
The acquisition of shares by HDFC is expected to be completed by January 9, 2020, said AHEL.-Business Standard