JOIN USThe Board of Directors of Apollo Energy Company, an Apollo Hospitals Group Company, approved the divestment of 23.3 per cent shareholding in Apollo Munich Health Insurance Company to its joint venture partner, Munich Re of Germany for Rs 163.5 crore.
The proposed transaction values Apollo Munich at Rs 703 crore.
Post completion of the transaction, scheduled for the end Q1 of CY2016, Apollo Hospitals Group’s shareholding in Apollo Munich shall stand reduced from 74.4 per cent to 51.1 per cent.
Correspondingly, Munich Re’s shareholding in Apollo Munich shall move to 48.7 per cent, and 0.2 per cent will be held by employees. Apollo Hospitals shall continue to hold its stake in Apollo Munich.
Dr Prathap C Reddy, Chairman, Apollo Munich Health Insurance Company and Chairman, Apollo Hospitals Enterprise said, “The show of confidence from our JV partner will go a long way in helping the Group achieve its vision of ‘Healthcare for all’.”
The opportunity for Munich Re to increase its shareholdings was provided through the decision of the Indian Government in March 2015, to increase the foreign direct investment cap in the insurance sector from 26 per cent to 49 per cent.
With the increase in shareholding, Munich Re strengthens its presence in India, which is one of the key markets for the company.