Private Equity Fund Investments
HDFC Life to acquire Exide Life Insurance for Rs.6,687-Cr
Mumbai-based, publicly listed HDFC Life Insurance Company Ltd (HLIC) will acquire a 100% stake of Bengaluru-based Exide Life Insurance Company Ltd from Exide Industries Ltd for INR 6,687 crore, of which INR 725.99 crore will be payable in cash and the balance as 8,70,22,222 equity shares (face value of INR 10) of the acquirer issued at INR 685 per share to Exide Industries Ltd, the holding company of Exide Life. Exide Life had reported a total premium income for FY21 of INR 3,325 crore, compared to INR 3,220 crore in the previous fiscal. As on June 30, 2021. It had an AUM of INR 18,780 crore and Embedded Value of INR 2,711 crore. Upon completion of the transaction, Exide Life would be merged into HLIC. AZB & Partners acted as the legal advisor to HDFC Life and Trilegal acted as the legal advisor to Exide Life and Exide Industries. Deloitte Touche Tohmatsu India and Rashmi Shah FCA (Registered Valuer) were appointed as valuers for the transaction by HDFC Life, and Desai Haribhakti & Co, Chartered Accountants and S Sundararaman (Registered Valuer) were appointed as valuers by Exide Industries. JM Financial and Ambit provided fairness opinions to the boards of HDFC Life and Exide Industries, respectively.
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