Bajaj Finserv to Acquire Allianz’s Stake
Bajaj Finserv Ltd announced on Monday its approval to acquire the entire 26% stake held by Allianz SE in their joint insurance ventures: Bajaj Allianz General Insurance Company Ltd (BAGIC) and Bajaj Allianz Life Insurance Company Ltd (BALIC). The total consideration for the acquisition of the stake is set at over ₹24,000 crore.
The agreed-upon consideration for the 26% stake in BAGIC is ₹13,780 crore, while the stake in BALIC is valued at ₹10,400 crore. As part of the transaction, Bajaj Allianz General Insurance Company has been valued at ₹53,346 crore, and Bajaj Allianz Life Insurance Company is valued at ₹40,000 crore.
The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE related to the insurance businesses will be terminated upon the completion of the first tranche of acquisition of at least 6.1% and the reclassification of Allianz from a Promoter to an Investor. Under the terms of the Share Purchase Agreement, Bajaj Finserv is proposed to acquire approximately 1.01%, Bajaj Holdings and Investment Ltd. approximately 19.95%, and Jamnalal Sons Pvt. Ltd. approximately 5.04%, resulting in an aggregate of 26% in each insurance company.
Following the acquisition, Bajaj Finserv’s stake in both companies will increase to 75.01%. Once the joint ventures are terminated under the terms of the SPA, the Bajaj Group and Allianz plan to independently pursue their insurance strategies within India.
The deal is subject to regulatory approvals, which include clearances from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Bajaj Finserv stated that the acquisition is expected to generate long-term value creation and strengthen its position in the Indian insurance market.
This transaction signifies the end of a long-standing partnership between Bajaj and Allianz and provides the Bajaj Group with complete ownership of both insurance companies. Shares of Bajaj Finserv Ltd closed at ₹1,871.85, marking an increase of ₹64.90, or 3.59%, on the BSE.
