Kotak Mahindra Bank on Thursday announced that Zurich Insurance Company Ltd will acquire 51% stake in Kotak General Insurance for ₹4,051 crore.
Kotak Mahindra Bank and Kotak Mahindra General Insurance Company have entered into definitive agreements with Zurich Insurance Company Ltd, whereby Zurich will invest approximately ₹4,051 crore to acquire a 51% stake in Kotak General Insurance, the private sector lender said in a release.
The investment by Zurich Insurance Company will be through a combination of fresh growth capital and share purchase.
Zurich will acquire an additional stake of 19% within a period of three years from its initial acquisition, the bank said.
“Kotak Mahindra Group’s pan-India ‘phygital’ distribution presence and Zurich’s distinct global capabilities in digital assets, B2B and B2C formats has potential to create a transformational ‘digical’ impact for the Kotak General Insurance franchise delivering innovation efficiently and rapidly in the Indian general insurance space,” said Dipak Gupta, MD & CEO, Kotak Mahindra Bank.
The transaction is subject to customary conditions precedent including regulatory approvals from the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India, and the Competition Commission of India.
Morgan Stanley acted as the financial advisor to Kotak Mahindra Bank and Kotak General Insurance Company for the strategic alliance with Zurich Insurance Group.