Private life insurer HDFC Life Insurance Friday stated it'll collect Exide Life Insurance from Exide Industries in a deal really well worth Rs 6,687 crore. The board of directors of HDFC Life Insurance Company (HDFC Life), Exide Industries and Exide Life Insurance Company authorized the transaction related to the sale of Exide Life Insurance to HDFC Life, HDFC Life stated in a release.
HDFC Life will collect a 100 consistent with cent stake in Exide Life Insurance from Exide Industries thru issuance of 8,70,22,222 stocks at a problem charge of Rs 685 consistent with percentage and coins payout of Rs 726 crore aggregating to Rs 6,687 crore.
The system for the merger of Exide Life into HDFC Life could be initiated on of entirety of the acquisition, the insurer stated withinside the release.
HDFC Life Managing Director and CEO Vibha Padalkar stated the amalgamation can result in value creation for customers, employees, shareholders and distribution partners. It offers us a possibility to recognise synergies springing up out of complementary commercial enterprise models, and similarly bolster our proprietary distribution network, she stated.
The proposed transaction will supply customers access to a wider bouquet of products and service touchpoints. Exide Life has a strong foothold in South India, specifically in tier 2 and 3 towns.