M&A
Edelweiss to sell its 70% stake in insurance broking JV to partner Arthur Gallagher for Rs.308-Cr
Mumbai-based, publicly listed Edelweiss Financial Services will exit the insurance broking business by selling its 70% stake (37,00,000 shares of INR 10 each) in Edelweiss Gallagher Insurance Brokers Ltd for INR 307.60 crore to joint venture partner Arthur J Gallagher & Company. Gallagher, which previously held 30% in the business, will acquire all the remaining shares, taking its stake to 100%. In addition, Edelweiss Financial Services will also be entitled to receive a deferred contingent consideration based on the future revenue of Edelweiss Gallagher Insurance Broker. Started in May 2019, Edelweiss Gallagher Insurance Brokers offers general insurance solutions to clients across India. Post deal, the JV will be rebranded as Gallagher, and Edelweiss will focus on growing its life and non-life insurance businesses,
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