New Delhi: HDFC is in discussion to buy Apollo Munich Health Insurance Company for an approximate valuation of Rs 1,000 crore, a recent report in ET states.
Citing a person, the report stated that “HDFC is close to acquiring Munich Re’s health insurance venture in India with Apollo. Since Ergo has a partnership with HDFC in the general insurance space, it was easier for the two to strike the deal.”
HDFC Ergo General Insurance is a joint venture between HDFC and Ergo International AG which is the part of Germany’s Munich Re group. HDFC has a 51 percent stake and Ergo holds 49 percent.
As per the report, Arpwood Capital is the advisor to the deal.
Keki Mistry, vice chairman of HDFC told ET, “We are open to organic growth opportunities, whether it is at the HDFC level or at the level of any of our subsidiaries but that depends obviously on the opportunity that is available.”
Apollo Munich is a joint venture between Chennai-based Apollo Hospitals and Munich Re. Apollo has a 51% stake in the company while Munich Re has a 49% stake.
Responding to the email sent by ET, Apollo Munich said, “As a company policy we do not comment on market speculations of this nature or regarding shareholding matters.”
Citing people, the daily has reported that HDFC Ergo had considered Star Health when the business was put on the block, for a possible acquisition and a deal is expected to close in the coming weeks. HDFC Ergo has acquired the L&T General Insurance business and is now the third-largest private sector insurer in the Rs 1.5 lakh crore industry.