In insurance broking JV, Edelweiss Financial Services to sell its 70% stake for ₹307.60 crore

The insurance broker business shall be exited by Edelweiss Financial Services by selling its 70% stake in Edelweiss Gallagher Insurance Brokers Limited for an amount of ₹307.60 crores, as said by the company on Friday. In a regulatory filing, Edelweiss Financial Services mentioned divesting its entire shareholdings in Edelweiss Gallagher Insurance Brokers Limited which is a subsidiary engaged in the business of insurance broking to Arthur J Gallagher and Co, as the company has agreed.

Taking its stake to 100%, all the remaining shares shall be now acquired by Gallagher who previously held 30% in business, as added by the filing.

In the manner as set out in the agreement, in one or more tranches, as mentioned in the agreement around 37 lakh equity shares of ₹10 each which represents 70% of the paid-up share capital of Edelweiss Gallagher Insurance Brokers held by the company is to be sold for a consideration of an amount of ₹307.60 crores, as said by the company.

Based on the future revenue of Edelweiss Gallagher Insurance Brokers, Edelweiss Financial Services shall also be entitled to receive a deferred contingent consideration in addition to the sale consideration, in the manner set out in the agreement.

Along with the fulfilment of the obligations/conditions prescribed in the agreement, the transaction is subject to receipt of regulatory and other appropriate approvals which includes an approval of the Insurance Regulatory and Development Authority of India.

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