Shares of Apollo Hospitals
rose 3.8 per cent to Rs 1,404 while those of Housing Development Finance Corporation (HDFC) climbed 1 per cent to Rs 2,200 after it was announced that the mortgage lender would acquire controlling stake of 51.2 per cent in the Apollo Munich Health Insurance for about Rs 1,347 crore.
After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of mortgage lender HDFC
Ergo. The deal is subject to regulatory approvals and the entire process is expected to be completed in nine months. READ THE PRESS RELEASE HERE
Ergo International AG, which holds 49 per cent stake in HDFC
Ergo, is a subsidiary of Munich Re and Munich Re also holds stake in Apollo Munich Health Insurance. After the amalgamation, Munich Re will continue to hold 49 per cent stake in HDFC
Ergo and the combined entity will have a gross direct premium of Rs 10,807 crore.