The Competition Commission of India has approved acquisition of 100% shareholding in Exide Life Insurance Company Limited by HDFC Life Insurance Company under Section 31(1) of the Competition Act, 2002.
HDFC Life offers a range of individual and group life insurance solutions including participating, non-participating and unit linked insurance products.
The proposed combination involves acquisition of fully paid-up equity shares, representing 100 per cent of target by the Acquirer from Exide Industries Limited, by issuing 8.70 crore 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 is said that a good quality, predominantly traditional, and protection-focus business will augment the existing embedded value of HDFC Life by approximately 10 percent.
The deal will allow HDFC Life to strengthen its presence in Southern India, especially in tier-2 and tier-3 cities. 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.
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