Bajaj Finserv Share Price Falls On Acquisition Of Allianz’s 26% Stake In Bajaj Allianz – News18
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Bajaj Finserv shares are in focus in Tuesday’s Trade after the company has signed share purchase agreements (SPAs) with Allianz SE
The acquisition of Allianz SE’s stake will increase Bajaj Group’s ownership in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) to 100 per cent from the current 74 per cent, Bajaj Finserv said in a statement.
Bajaj Finserv shares saw a decline in Tuesday’s Trade after the company has signed share purchase agreements (SPAs) with Allianz SE to acquire a 26 per cent stake in the two insurance joint ventures—Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC)—for Rs 24,180 crore.
The execution of the Share Purchase Agreements (SPAs) marks the conclusion of a 24-year partnership and the successful result of productive and amicable discussions to ensure a smooth transfer of Allianz’s stake.
With the acquisition of Allianz SE’s stake, Bajaj Group’s ownership in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) will increase to 100% from the current 74%, according to a statement from Bajaj Finserv.
The acquisition is subject to regulatory approvals, including clearance from the Competition Commission of India and the Insurance Regulatory and Development Authority of India (IRDAI).
The agreed consideration for the 26% stake in BAGIC and BALIC is Rs 13,780 crore and Rs 10,400 crore, respectively.
The joint venture between Bajaj Group and Allianz SE will end once the first tranche of acquisition—at least 6.1%—is completed and Allianz is reclassified from a promoter to an investor.
Under the SPA, Bajaj Finserv Ltd will acquire around 1.01%, Bajaj Holdings and Investment Ltd about 19.95%, and Jamnalal Sons Pvt. Ltd. approximately 5.04%, totaling 26% in each company. Following the acquisition, Bajaj Finserv’s stake will rise to 75.01% in both companies.
Upon termination of the joint ventures, Bajaj Group and Allianz will independently pursue their insurance strategies in India.
This acquisition represents a significant milestone in Bajaj Group’s efforts to advance next-gen insurance solutions, leveraging new technologies to serve consumers across India. It also brings both insurance ventures fully under the Bajaj Group, one of India’s most respected brands.
Both Allianz and Bajaj are committed to ensuring a smooth transition, safeguarding the interests of policyholders, intermediaries, and other stakeholders. Additionally, Bajaj Finserv and Allianz have entered into agreements to ensure continuity of reinsurance and other services during the transition.
