Bajaj Finserv to acquire Allianz's 26% stake in Bajaj Allianz Insurance for Rs 24,180 crore

New Delhi: Financial services firm Bajaj Finserv signed Share Purchase Agreements for the acquisition of a 26% stake owned by Allianz SE of Germany in its insurance businesses, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.

The execution of the Share Purchase Agreements (SPAs) marks the end of a 24-year relationship and also the culmination of constructive and amicable discussions to ensure a seamless transfer of the stake of Allianz.

The acquisition of Allianz SE's stake will increase Bajaj Group's ownership in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) to 100% from the current 74%, Bajaj Finserv said in a statement.

It said the acquisition is subject to regulatory approvals, including a nod from the Competition Commission of India and the Insurance Regulatory and Development Authority of India.

The agreed consideration for a 26% stake in BAGIC and BALIC is Rs 13,780 crore and Rs 10,400 crore, respectively, it said.

The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a promoter to investor, it said.

Under the terms of the SPA, it is proposed that Bajaj Finserv will acquire approximately 1.01%, Bajaj Holdings and Investment approximately 19.95% and Jamnalal Sons approximately 5.04%, aggregating to 26% in each of the insurance companies, it said.

Post-acquisition, BFS's stake will be 75.01% in both companies.

Once the joint ventures are terminated under the terms of the SPA, the Bajaj Group and Allianz aim to independently pursue their insurance strategies in India.