In mid-June 2019, HDFC had signed an agreement with Apollo Hospitals Group to acquire its 51.2% stake in the health insurance company for Rs 1,347 crore.
Apollo Hospitals Enterprise Ltd (AHEL) on Thursday said that it had received an approval from Insurance Regulatory and Development Authority of India (Irdai) on January 1 for the transfer of 51.2% stake held by the company along with Apollo Energy Company Ltd (AECL) and other shareholders in Apollo Munich Health Insurance Company Ltd (AMHI) to Housing Development Finance Corporation Ltd (HDFC). The sale deal of AMHI with HDFC is expected to be completed by January 9, 2020, Apollo Hospitals informed the stock exchanges.
In mid-June 2019, HDFC had signed an agreement with Apollo Hospitals Group to acquire its 51.2% stake in the health insurance company for Rs 1,347 crore. According to the deal, HDFC will acquire majority stake in Apollo Munich from the Apollo Hospitals Group for Rs 1,347 crore and will merge the company with its arm, HDFC ERGO.
HDFC will acquire 50.8% from the Apollo Hospitals Group for Rs 1,336 crore and will buy out the 0.4% stake being held by the employees for Rs 10.84 crore. Besides, the German insurer Munich Health will pay Rs 294 crore to AHEL and Apollo Energy for terminating their joint venture.
Apollo Hospitals, in its filings on Thursday, said AMHI, HDFC Ergo and HDFC have received requisite approvals for the said acquisition from Competition Commission of India, the Reserve Bank of India and the last being from Irdai on January 1, 2020.
AHEL also added according to its letter dated June 19, 2019, the board of Apollo Hospitals Enterprise has approved sale of the entire 9.96% equity stake held by AHEL in Apollo Munich Health Insurance Company.
The Share-Purchase Agreements (SPA) had been executed by and amongst, AHEL, HDFC, HDFC ERGO General Insurance Company (HDEC Ergo), Apollo Munich Health Insurance Company Ltd (AMHI), Apollo Energy Company Ltd (AECL), Munich Health Holdings and other shareholders of AMHI for and in connection with the acquisition of upto 51.2°/a of shareholding of AMHI by HDFC from AHEL, AECL and other shareholders, Apollo Hospitals further said.