HDFC Life Insurance has announced the 100% acquisition of Exide Life Insurance and its subsequent merger. HDFC Life will acquire 100% 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.
The proposed transaction will accelerate the growth of Agency business of HDFC Life as well as strengthen other distribution channels including Broker, Direct and Co-operative Banks, HDFC Life said.
Besides the acquisition will provide complementary geographical presence with a strong foothold in South India, especially in Tier 2 and Tier 3 locations, it said.
It added that customers will to benefit from stronger product suite, wider distribution network and more service touch points.
The synergies will enhance shareholder value with potential to improve new business margins via operating leverage and product mix optimisation, it added.
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