New Delhi: Competition Commission of India (CCI) Tuesday approved the acquisition of Exide Life Insurance by HDFC Life Insurance.
The proposed combination involves the acquisition of fully paid-up equity shares, representing 100 per cent of Exide Life Insurance by HDFC Life Insurance from Exide Industries Ltd, as per a press release.
“After completion of the share acquisition, Exide Life (which will be a wholly-owned subsidiary of HDFC Life) is proposed to be merged with HDFC Life,” it added.
The approval came after HDFC Life Insurance in September said it will acquire Exide Life Insurance from Exide Industries in a deal worth Rs 6,687 crore.
HDFC Life will acquire a 100 per cent stake in Exide Life Insurance from Exide Industries via issuance of 8,70,22,222 shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore aggregating to Rs 6,687 crore.
It had said that a good quality, predominantly traditional, and protection-focused business will augment the existing embedded value of HDFC Life by approximately 10 per cent.
The embedded value of Exide Life, as of June 30, 2021, is Rs 2,711 crore and has been reviewed by Willis Towers Watson Actuarial Advisory LLP, it said.
PTI