Kotak Mahindra to Buy Out Entire 26% of Old Mutual’s JV Stake
Mumbai, April 28, 2017: In line with its philosophy to deepen and expand in Indian Financial Services, Kotak Mahindra Bank Limited has entered into an agreement to purchase the entire 26% equity stake held by Old Mutual plc, UK (OM) in Kotak Mahindra Old Mutual Life Insurance Limited (”Kotak Life”) for a consideration of Rs. 1,292.7 crore, subject to all regulatory and other approvals. After the completion of the transaction, Kotak Mahindra Group will hold 100% of the equity shareholding of Kotak Life.
Kotak Lifeis one of the leading private sector life insurance companies in India. It iscurrently a joint venture between Kotak Group and OM. The networth of KotakLife stands at Rs. 1,825 crore as on March 31, 2017.
Commentingon the proposed transaction, Gaurang Shah, President – Asset Management,Insurance & International Business, Kotak Mahindra Bank, said, “KotakMahindra Group and Old Mutual have enjoyed a fruitful relationship over thepast 16 years and built a successful and trusted brand in the life insuranceindustry in India. Old Mutual has been a valued business partner.”
“India is inan exciting phase of its economic journey and the financial services sector,especially the insurance sector, is poised for significant growth. Kotak Lifewill continue to leverage this opportunity through its growing network ofagency and other channel partners including Kotak Mahindra Bank and its Groupentities” added Gaurang.
President – Asset Management,Insurance & International Business, Kotak Mahindra Bank