Global Insurance Major Allianz SE has concluded a binding share purchase agreement with Bajaj Finserv and said it has sold a 26% stake in non-life insurance joint ventures (JVs) – Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.
The company informed them of its intention to sell JVS shares last October. The report states that global insurers have created a dispute with many shareholders about the direction the partnership is taking. The company was not permitted to raise shares in the joint venture at discounted rates and had no major say in strategic decisions. Bloomberg had It has been reported.
“The sales decision is the result of constructive and friendly consultations with Bajaj Finserv Ltddd. India continues to be one of Allianz’s growing markets, and Allianz will explore new opportunities to strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator,” the company said.
Once funds are available at the time of transaction closure, Allianz said it will consider the company’s strategic goals, particularly the deployment options in which reinvestment of sales will support reinvestment in new opportunities in India.
Allianz will comply with the capital management policy updated on Capital Markets Day in December 2024.
The transaction is subject to regulatory approval and is expected to take several months, the insurance company said. If the transfer of shares and the suspension of Allianz is the promoter of the joint venture, the joint venture agreement between Allianz SE and Bajajfinshab will end.
Bajaj Allianz Financial Distributors Stocks
Bajaj Finserv has released an exchange declaration that will acquire stake in Allianz of Bajaj Allianz Financial Distributors Ltd for 12.5 crore.
“In addition, the board in line with the above decision has also approved the acquisition of the entire shares held by Allianz at Bajaj Allianz Financial Distributors Limited (BAFDL). In accordance with the same, the company will acquire 12,00,000 shares of 10 par value shares each at BAFDL, for considerations not exceeding 12.5 crores from Allianz. Posting the above acquisition will retain the entire share capital of BAFDL by the company.”
