Zurich Insurance company will acquire 70 per cent stake in Kotak General for Rs 5,560 crore in single tranche. Initially, Zurich Insurance had announced early acquisition of 51 per cent and the rest of the 19 per cent in period of three years. The deal will be done via primary and secondary acquisitions.
In a corporate filing, Kotak Mahindra Bank said that the involved parties in the transaction, namely the Bank, Zurich, and Kotak General, have reached a mutual agreement. Zurich will procure a 70% stake in Kotak General through a blend of primary and secondary acquisitions in a single tranche.
The total consideration for this acquisition amounts to approximately Rs 5,560 Crore, as opposed to the previously disclosed proposal known as the “Proposed 70% Acquisition.”
The official statement further said that all other terms of the agreement would remain unchanged. It further stated that the proposed acquisition is contingent upon meeting customary conditions precedent, which includes obtaining regulatory approvals from both the Reserve Bank of India and the Insurance Regulatory and Development Authority of India.