Housing Development Finance Corporation Limited (BSE:500010) entered into agreement to acquire 51.2% stake in Apollo Munich Health Insurance Company Limited from a group of sellers for INR 13.5 billion on June 19, 2019. The consideration is subject to indemnity related adjustments. Under the terms of the acquisition, Housing Development Finance Corporation will acquire 183.9 million shares of Apollo Munich Health Insurance and the consideration will be paid in cash. Apollo Hospitals Enterprise Limited will sell 9.96% stake in Apollo Munich Health Insurance Company for INR 3 billion and a few employees will sell 0.4% stake in Apollo Munich Health Insurance Company Limited for INR 108.4 million. Post completion of the acquisition, Apollo Munich Health Insurance Company Limited will become subsidiary of Housing Development Finance Corporation Limited. Post completion, Apollo Munich will be merged with HDFC ERGO General Insurance Company Limited under a scheme. The transaction is subject to approval by National Housing Bank, Insurance Regulatory and Development Authority of India, Competition Commission of India and/ or such other approval from other governmental authorities. The transaction is approved by the Board of Apollo Hospitals Enterprise Limited. As of August 23, 2019, the transaction is approved by Competition Commission of India. As of January 1, 2020, the deal has received all requisite approvals for the acquisition including competition commission of India (CCI), Reserve Bank of India and the last being from Irdai. The acquisition is expected to complete within a period 4 months. The transaction is expected to close by January 9, 2020. Apollo Hospitals Enterprise Limited will use the proceeds from the transaction for investing in healthcare business. Ashwath Rau, Kashish Bhatia, Rajendra Barot, Arvind Ramesh and Rishikesh Desai of AZB & Partners acted as the legal advisors to Housing Development Finance Corporation and Munich Health Holding. Ernst and Young acted as financial advisor to HDFC Limited.

Housing Development Finance Corporation Limited (BSE:500010) completed the acquisition of 51.2% stake in Apollo Munich Health Insurance Company Limited from a group of sellers on January 9, 2020. Registrar of the Companies approved the change of name of Apollo Munich Health Insurance Company Limited to HDFC ERGO Health Insurance Limited. Citigroup Inc. acted as financial advisor for Apollo Munich.