Private sector Kotak Mahindra Bank on Friday said that it has completed acquisition of 26 percent stake in its life insurance subsidiary from Old Mutual Plc for a value of over Rs 1,292 crore, making the insurance company a wholly-owned arm.
In April this year, the bank had entered into a share purchase agreement to buy 13,26,75,452 equity shares or 26 percent of Kotak Mahindra Old Mutual Life Insurance Ltd (KMOM), a subsidiary of the bank, from Old Mutual Plc for Rs 1,292.70 crore to be payable in cash.
“As a follow up to that, we now wish to inform you that the bank has completed this transaction for acquisition on October 13, 2017 and KMOM is now wholly owned subsidiary (100 percent) of the bank,” it said in a regulatory filing.
The life insurer had reported profit of Rs 300 crore last fiscal. The overall networth of the business stood at Rs 1,825 crore as of March 2017.
Company’s new premium income in September this fiscal stood at Rs 261.91 crore, slightly down from Rs 263.47 crore in the same period a year ago.
Kotak Mahindra Bank shares closed 2.2 percent up at Rs 1,081.70 on BSE on Friday.