HDFC Life to acquire Exide Life Insurance in Rs 6,687-crore deal

The acquisition will involve issue of 8.70 crore shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore.

HDFC Life Insurance on Friday announced that its board has approved acquisition of 100 per cent stake in Exide Life Insurance Company for a total consideration of Rs 6,687 crore, in the largest insurance deal in the country.

The acquisition will involve issue of 8.70 crore shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore. The process for merger of Exide Life into HDFC Life will be initiated on completion of the acquisition. The entire process, including the acquisition and subsequent merger, is subject to obtaining the relevant regulatory and other approvals.

HDFC Life shares closed 3.21 per cent lower at Rs 734.45 on the BSE on Friday. The embedded value of Exide Life, as of June 2021, is Rs 2,711 crore and has been reviewed by Willis Towers Watson Actuarial Advisory LLP.

Deepak S Parekh, chairman, HDFC Life said, “This is a landmark transaction, first of its kind, in the Indian life insurance space. It would enhance insurance penetration and further our purpose of providing financial protection to a wider customer base.”

Rajan B Raheja, vice chairman of Exide Industries and chairman of Exide Life Insurance Company, said, “The focus of Exide Industries has always been to enhance the value for its stakeholders. The proposed transaction is another step taken by Exide to meet above stated objective.”

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