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MUMBAI: South African insurer Sanlam has said it will hike its stake in Shriram General Insurance to 50.99% from 40.25% and in Shriram Life Insurance to 54.4% from 42.38%. The insurer would also cut its stake in Shriram Finance from 10.19% to 9.54%.
The stake hike in Shriram’s insurance arms will be achieved by purchasing shares from TPG Investments and Shriram Ownership Trust.The transactions will result in the South African insurer becoming the majority shareholder in both insurance companies.
Sanlam said it will raise the equivalent of Rs 892 crore (ZAR 2 billion) to fund the purchase. The balance will be met through the sale of SFL shares. Going by the current market price, Sanlam’s 67% stake sale would fetch Rs 614 crore.
“Sanlam has been in partnership with Shriram Group since 2005, and during this time, it has gained a deep understanding of the Indian insurance market as well as the portfolio of businesses under Shriram,” the company said in a statement.
The stake hike in Shriram’s insurance arms will be achieved by purchasing shares from TPG Investments and Shriram Ownership Trust.The transactions will result in the South African insurer becoming the majority shareholder in both insurance companies.
Sanlam said it will raise the equivalent of Rs 892 crore (ZAR 2 billion) to fund the purchase. The balance will be met through the sale of SFL shares. Going by the current market price, Sanlam’s 67% stake sale would fetch Rs 614 crore.
“Sanlam has been in partnership with Shriram Group since 2005, and during this time, it has gained a deep understanding of the Indian insurance market as well as the portfolio of businesses under Shriram,” the company said in a statement.
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