Kotak Mahindra Bank To Buy Out Old Mutual’s 26% Stake In Kotak Life For Rs 1,293 Crore
Kotak Mahindra Bank Ltd. will buy out Old Mutual Plc’s 26 percent stake in their joint venture Kotak Mahindra Old Mutual Life Insurance Ltd. (Kotak Life) for Rs 1,262.7 crore.
Post the completion of the transaction, Kotak Mahindra Group will hold 100 percent equity shareholding of Kotak Life, the company said in a press release. The deal, which needs regulatory approvals, values Kotak Life at Rs 4,972 crore, according to BloombergQuint’s calculations.
“Kotak Mahindra Group and Old Mutual have enjoyed a fruitful relationship over the past 16 years and built a successful and trusted brand in the life insurance in India. Old Mutual has been a valued business partner,” Gaurang Shah, President-Asset Management, Insurance and International Business at Kotak Mahindra Bank said in the press release.
Kotak Mahindra Bank and its affiliates held 74 percent stake in Kotak Life before the deal. The net worth of Kotak Life stands at Rs 1,825 crore as on March 31, 2017.