Hyderabad: Healthcare major Apollo Hospitals on Friday sold 23.3 per cent stake in Apollo Munich Health Insurance Company to its joint venture partner Munich Re of Germany for Rs 163.5 crore.
The board of directors of Apollo Energy Company Ltd., an Apollo Hospitals Group Company, on Friday approved the divestment.
The proposed transaction values Apollo Munich at Rs 703 crore. The transaction, which follows the government increasing the foreign investment limit in insurance companies last year, is expected to completed by the end of the first quarter of 2016. After the completion of the deal, Apollo Hospitals Group’s shareholding in Apollo Munich will stand reduced from 74.4 per cent to 51.1 per cent, while Munich Re’s shareholding in the insurance firm will increase to 48.7 per cent and 0.2 per cent will be held by employees.
Ms Shobana Kamineni, wholetime director, Apollo Munich Health Insurance, and vice-chairperson of Apollo Hospitals, said “The transaction highlights the strong position of Apollo Munich as one of India’s leading health insurance company. It also demonstrates the commitment of both the partners to further expand the operations of Apollo Munich.”
