Exide Life says its board has approved the divestment of the company's entire equity shareholding in Exide Life by way of sale to HDFC Life
HDFC Life Ltd will acquire Exide Industries Ltd's (EIL) entire stake in Exide Life Insurance Company for Rs 6,887 crore.
In a filing with BSE, EIL said its board has approved the divestment of the company's entire equity shareholding in Exide Life, a wholly-owned subsidiary of the company, by way of sale to HDFC Life. The deal is subject to the approval of its shareholders.
In the pre-open session, HDFC Life share was ruling 0.9 per cent lower at Rs 752 per share.
EIL's total investment in Exide Life is Rs 1679.59 crore. As a part of the agreement, it will get Rs 725.9 crore as cash consideration in the transaction. It will get 87 million shares of HDFC Life at a price of Rs 685 per equity share.
The date of completion of the sale depends on the time taken for receiving all approvals, including those from concerned regulators. However, it is estimated that the sale will be completed before June 2022.
Excide life reported revenue of Rs 4,937.46 crore in the year ended March 2021, with a net worth of Rs 1,481.42 crore.
The consideration for the proposed transaction has been determined based on the valuation report prepared by Deloitte Touche Tomhatsu India LLP and Desai Haribhakti & Co. The fairness opinion was issued by Ambit Private Limited (a SEBI registered merchant banker), EIL said.
The valuation reports and the fairness opinion were also reviewed by the audit committee, which confirmed that the consideration for the proposed transaction is fair.
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