HDFC ERGO Health To Merge With HDFC ERGO Through Share Swap
HDFC ERGO Health erstwhile Apollo Munich Health Insurance will merge with HDFC ERGO through a share swap deal.
The board of director of HDFC ERGO and HDFC ERGO Health at its meeting on Jan. 15, approved a scheme of arrangement and amalgamation between the two entities, Housing Development Finance Corporation Ltd. said in a regulatory filing.
Mortgage lender HDFC is promoter of general insurance firm HDFC ERGO.
The scheme envisages amalgamation and will lead to dissolution of HDFC Ergo Health without winding up, it said.
"The board of directors of HDFC ERGO and HDFC ERGO Health at the meeting also approved the share exchange ratio of 100:385 that is for every 385 shares of Rs 10 each of held in HDFC ERGO Health as on the record date, 100 shares of Rs 10 each of HDFC ERGO would be allocated," the company said in the filing.
Post completion of the said merger, HDFC will hold 50.58 percent stake in HDFC ERGO, it said.
Earlier this month, HDFC ERGO got regulatory approvals for acquiring a majority shareholding in Apollo Munich Health Insurance Co. Ltd.