Tuesday, November 26

HDFC Ergo Eyeing to acquire Apollo Munich Health Insurance

HDFC Ergo General Insurance is in advanced talks to acquire Apollo Munich Health Insurance for around Rs 2,600 crore. This acquisition will see the exit of German reinsurance company Munich Re.

Munich Re holds 49% stake in Apollo Munich while Chennai-based Apollo Hospitals, promoted by Prathap C Reddy and his family, holds 51% stake in the second-largest standalone health insurance provider in the country.

HDFC Ergo, arm of housing finance firm HDFC, is 49% owned by Ergo International AG, an insurance unit of Munich Re, and 51% by HDFC. In 2016, HDFC Ergo had acquired L&T General Insurance to become the third-largest private sector general insurer in the country.

Arpwood Capital is acting as an exclusive advisor to both target and buyer.

Separately, UK’s development finance institution CDC Group Plc. is considering selling an undisclosed stake in its recent India platform Ayana Renewable Power for around $100 million (Rs 706 crore), two people in the know told Mint.

For this, CDC is in talks with a few investment banks, said one of the persons. Ayana aims to develop hundreds of megawatts of generation capacity for underserved states in India as well as countries in South Asia.

In April, it was reported that ReNew Power Ventures Pvt. Ltd will acquire rival Ostro Energy Pvt. Ltd from private equity firm Actis, striking the largest buyout in India’s renewable power sector and becoming the top green energy company by capacity.

In January, Equis Pte. Ltd and Global Infrastructure Partners (GIP) announced the closing of the previously announced sale by Equis of 100% of the equity interest in Equis Energy to GIP and its co-investors, for an enterprise value of $5 billion (including assumed liabilities of $1.3 billion).