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Edelweiss Group on Friday announced divestment of 70 per cent stake in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL).
“Gallagher, who previously held 30 per cent in the business, will now be acquiring all the remaining shares, taking its stake to 100 per cent,” it said in a statement, adding that the transaction is subject to approvals by the Insurance Regulatory and Development Authority of India.
In a regulatory filing, Edelweiss said the transaction is likely to be completed within 10 months.
A total of 37 lakh equity shares of ₹10 each, representing 70 per cent of the paid-up share capital of EGIBL, will be sold for a consideration of ₹307.60 crore, in one or more tranches, it further said.
Also read: Edelweiss General Insurance to focus on health and motor segments
“In addition to the sale consideration, the company will also be entitled to receive a deferred contingent consideration based on the future revenue of EGIBL, in the manner set out in the agreement,” it further said.
The business will rebrand to Gallagher in the coming months. Edelweiss Group will focus on growing its life and non-life insurance businesses.
‘Gaining a global edge’
Gallagher and Edelweiss entered into a partnership in May 2019.
EGIBL offers general insurance solutions and operates across four areas of corporate, affinity and association, reinsurance and global and digital solutions.
“We believe in doing what is right for the business and the customer and integrating the business with Gallagher will give it a global edge and achieve our objectives. It also provides us with the flexibility to reallocate capital and invest in scaling up our fast-growing life and non-life insurance businesses, making this a win-win for both of us,” said Rashesh Shah, Chairman, Edelweiss Group.
“We view India as a key and strategic market for the insurance industry and for Gallagher, given its scale and growth potential, and we see many interesting opportunities for further development of the business,” said Vyvienne Wade, Gallagher Chairperson of Global Broking in Europe, Middle East, and Asia.
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