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With this acquisition, Bajaj Group will now gain 100% ownership in Bajaj Allianz.
“Bajaj Finserv Ltd., one of India’s largest and most diversified financial services groups, today signed Share Purchase Agreements (SPAs) for the acquisition of 26% interest owned by Allianz SE in its insurance businesses, viz. Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC),” the company said in a release.
The agreed price for a 26% stake is Rs. 13,780 crore in BAGIC and Rs. 10,400 crore in BALIC.
Read More: Bajaj Allianz breaks up in Rs 24,000-crore deal
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The 24-year-old joint venture between Bajaj Group and Allianz SE in the insurance business will end once the first phase of acquiring at least 6.1% is completed, and Allianz is reclassified from Promoter to Investor.
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As per the SPA, Bajaj Finserv will acquire about 1.01%, Bajaj Holdings and Investment Ltd. around 19.95%, and Jamnalal Sons about 5.04%, totaling 26% in each insurance company. After the acquisition, BFS will hold a 75.01% stake in both companies.
“Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding Rs. 40,000 crore, while maintaining industry-best solvency margins. We remain committed to creating better access to insurance in India, greater financial resilience, and superior experience for our customers. Given the advantage of single ownership in both companies, we are confident that the acquisition will become a big driver of value for our stakeholders in the years to come,” said Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv.
On Monday, the shares of Bajaj Finserv closed 3.6% higher at Rs 1,871.85 on the BSE.
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