Life insurer HDFC Life Insurance on Friday said it will acquire Exide Life Insurance from Exide Industries. The company said that this deal will be completed for Rs 6,687 crore. HDFC Life in a statement said that the Board of Directors of HDFC Life Insurance Company, Exide Industries and Exide Life Insurance Company have approved the sale of Exide Life Insurance to HDFC Life.
HDFC Life will buy 100% stake in Exide Life Insurance from Exide Industries. For this, the company will issue 8,70,22,222 shares to Exide Industries at Rs 685 per share and will pay Rs 726 crore in cash. In this way, this entire deal will be completed for Rs 6,687 crore. The company said that the process of merger of Exide Life with HDFC Life would be completed on receipt of necessary approvals for the acquisition.
Completion of this transaction will require approval from shareholders of IRDAI, CCI, NCLT, stock exchange and HDFC Life and Exide Industries. HDFC Life Chairman Deepak Parekh said that this is a historic first of its kind deal in the Indian life insurance space. This will make the reach of insurance more widespread and help fulfill our objective of providing financial protection to a very large consumer base.