Canada’s insurer Intact and German insurer HDI-Gerling International Holdings have emerged as the top contenders to buy a 26% stake in Anil Ambani owned Reliance Capital Ltd.’s non-life insurance arm, Reliance General Insurance Co. Ltd.
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Intact Insurance Company is the largest home, auto and business insurer, whereas HDI-Gerling International Holding AG is the third largest insurance group of Germany.
According to the sources close to the development of the deal said the deal value could be something around Rs 1,500 crore. If deal is finalized, this would make it the largest foreign investment in the insurance business in India. Reliance General has appointed UBS India as its advisors.
If sources are to be believed, the deal is almost finalized and it is only the matter of time before ‘a term sheet’ is signed by ‘Reliance Capital, Reliance General and the foreign investors.
However, a Reliance Capital spokesperson termed the news of the potential deal speculation and refused to comment. Gilles Gratton, Vice-president (corporate communication) at Intact Financial Corporation which owns Intact Insurance, also refused to comment on the deal. Martin Schrader press officer at Talanx AG that controls HDI-Gerling, termed it a market rumour and refused to comment.
Travelers companies and Samsung Fire and Marin are also among potential bidders. Recently, Nippon Life Insurance agreed to pay Rs 1,600 crore (approx.) for a 26% stake in Reliance Capital’s asset management unit. The company also owns 26 % in Reliance life insurance business, acquired last year for Rs 3,800Â crore(approx.)
The process for the stake sale in the general insurance business is also on, and once that is completed, debt should come down by another Rs.1,000-1,500 crore aid a senior executive with Reliance Capital.
http://www.insuringindia.com/News/Canada-and-German-firms-top-contenders-to-buy-Reliance-stake.aspx
