Chennai-based Tube Investments of India Ltd will sell 14 per cent of Cholamandalam MS General Insurance to its joint venture partner Mitsui Sumitomo Insurance Company of Japan for ₹882.67 crore, said a communication from Tube Investments to the Bombay Stock Exchange.
Tube Investment’s board approved the stake sale today.
On completion of the deal, Mitsui Sumitomo will increase its ownership in Chola MS to 40 per cent from 26 per cent, the release said.
In a release, MM Murugappan, Chairman, Tube Investments, said: “I am delighted that Mitsui Sumitomo is increasing its stake in Chola MS to 40 per cent. This will further strengthen our relationship with Mitui Sumitomo and help realise our vision in making Chola MS a most respected general insurer in India.”
Yasuyoshi Karasawa, President and CEO, Mitsui Sumitomo, said: “We are pleased that Murugappa group accepted our offer to increase our stake in Chola MS. We will cooperate with Murugappa group to increase the value of Chola MS through this transaction and to provide further safety and security to customers in India.”
Cholamandalam MS offers products that include accident, engineering, health, liability, marine, motor, property, travel and rural insurance for individuals and corporates.