The Hindu Business Line : Exide to buy GMR stake in ING Vysya for Rs 203 cr

GMR Industries Ltd will divest 49.13 per cent of its stake held in ING Vysya Life Insurance Company Pvt Ltd (IVL), in favour of the Raheja group-owned Exide Industries Ltd.

The board of directors of GMR Industries Ltd at its meeting held on Wednesday has approved signing of share sale and purchase agreement to this effect.

The sale of 19.16-crore equity shares held in IVL would fetch GMR Rs 203.2 crore. GMR is selling this stake to meet the funds required for proposed expansion and new projects and also repayment of loans obtained for these investments, the company informed the stock exchanges.

In a separate communiqué to exchanges, Exide Industries said its board has decided to acquire 49.13 per cent stake in ING Vysya Life through acquisition of shares held by GMR Industries.

Further, Exide said it also plans to subscribe to additional shares of ING Vysya Life worth Rs 28.4 crore to increase its holding to 50 per cent.

Following this, the total capitalisation of ING Vysya Life would increase to Rs 440 crore from Rs 390 crore.

After the capital call and relevant regulatory approvals, the ING group would continue to hold 26 per cent, the maximum stake currently allowed under FDI regulations, Gujarat Ambuja Cements Ltd 14.87 per cent and Enam 9.13 per cent.

The Exide board has also decided to invest Rs 17.5 crore in warrants of IVL, which would be converted into equity shares of IVL upon exercise of the warrants over the next three to four years to meet the capital requirements of IVL, while maintaining the company's 50 per cent equity shareholding in IVL.

Commenting on the deal, the GMR group Chairman, Mr G.M. Rao, said, "We have supported ING Vysya Life since its inception in 2001 through its successful and rapid growth. Due to the current positive investment climate in the country, we are now keen to focus on growth in the infrastructure business, being our core sector, and also agri-business."

Mr Frank Koster, Managing Director & CEO of ING Vysya Life, said, " Exide will help us to become stronger and bolder in our ambition to become a leading Indian life insurance company."

Mr Rajan Raheja, Vice-Chairman of Exide, stated: "Leveraging ING's international expertise in insurance, we believe that ING Vysya Life has a bright future."

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