Bajaj Finserv (BFL) in it’s communication to the stock exchanges, has informed of Allianz’s intention to exit.
- The German Company Allianz SE holds 26% stake in Bajaj Allianz Life Insurance Co. and Bajaj Allianz General Insurance Co, whereas BFL holds the balance 74% in both.
- Allianz may be planing to exit as Bajaj is not allowing it to raise it’s stake at a discounted price. German Company is also speculated to not being given adequate say in the strategic direction of the businesses.
BFL has informed that the exit discussions are still in the early stages, and no formal proposal has been presented by Allianz so far.
Allianz, as per a Bloomberg report, is instead looking to buy stakes in the new insurance start-ups to try capitalise on the Indian insurance opportunity.
BFL has announced share purchase agreements with Allianz SE to acquire 26% stake in the insurance joint venture Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) for Rs 24,180 crore ($2.83 billion).
BFL is acquiring 1.01% stake in both entities, Bajaj Holdings and Investment Ltd. 19.95% and Jamnalal Sons Pvt. Ltd. 5.04%; making the promoter group own 100% of both insurance entities.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/070519c5-c184-48d5-8283-f1c063a7ec72.pdf