Mumbai:Edelweiss Group on Friday said it has sold its entire stake in an insurance broking joint venture to existing promoter Gallagher & Co.
This will raise the stake of US-based insurance broking firm Gallagher in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL) from 30% to 100%, according to a regulatory filing by Edelweiss.
As part of the deal, Edelweiss will sell 3.7 million shares of EGIBL at ₹10 each, representing 70% of the paid-up share capital, totalling ₹307.60 crore. It is subject to approval by the Insurance Regulatory and Development Authority of India.
The news was first reported by the Economic Times on Friday.
Edelweiss and Gallagher entered into their partnership in May 2019, with Gallagher taking a minority stake in the venture. Since last year, Edelweiss has been taking steps to simplify its business structure and strengthen its balance sheet. In August, Edelweiss sold its 51% stake in a wealth management business to Pacific Alliance Group for about $300 million.
“We believe in doing what is right for the business and the customer, and integrating the business with Gallagher will give it a global edge and achieve our objectives,” said Rashesh Shah, chairman, Edelweiss Group. “It also provides us with the flexibility to reallocate capital and invest in scaling up our fast-growing life and non-life insurance businesses, making this a win-win for both of us,” he added.
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