Aniket PujariBajaj Finserv share price dropped nearly 2% on Tuesday, after the company announced the acquisition of Allianz’s 26% stake in Bajaj Allianz Life & General Insurance. Bajaj Finserv shares fell as much as 1.90% to an intraday low of ₹1,836.15 apiece on the BSE.
Bajaj Finserv said it signed a 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 acquisition of Allianz SE’s stake will increase Bajaj Group’s ownership in BAGIC and BALIC to 100% from the current 74%.
The agreed consideration for 26% stake in BAGIC and BALIC is ₹13,780 crore and ₹10,400 crore respectively, Bajaj Finserv said in a regulatory filing on March 17.
The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a Promoter to Investor, it added.
Under the terms of the Share Purchase Agreements, Bajaj Finserv will acquire approximately 1.01%, Bajaj Holdings and Investment Ltd. approximately 19.95% and Jamnalal Sons Pvt. Ltd. approximately 5.04%, aggregating to 26% in each of the insurance companies.
Post acquisition, Bajaj Finserv stake will be 75.01% in both the companies.
The acquisition is subject to regulatory approvals, including approvals from the Competition Commission of India and the Insurance Regulatory and Development Authority of India, it added.
At 10:15 AM, Bajaj Finserv shares were trading 1.37% lower at ₹1,846.15 apiece on the BSE.
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