Contact Your Financial Adviser Money Making MC
7
July 2017
Fertiliser
cooperative Indian Farmers Fertilizer Co-operative (IFFCO) on Friday said it
will divest 21.64 per cent stake in its insurance joint venture IFFCO Tokio
General Insurance Company Ltd to its Japanese partner Tokio Marine Asia Pte Ltd
for Rs 2,380.40 crore.
Along
with IFFCO, Indian Potash Ltd (IPL) will also divest 1.36 per cent stake in
insurance company in favour of Tokio Marine for Rs 149.60 crore.
Following
the acquisition of 23 per cent stake for Rs 2,530 crore from both the
companies, Tokio Marine's stake in the general insurance company would go up to
49 per cent.
The
per share value of IFFCO Tokio General is valued at Rs 408,43.
"This
is a good opportunity for IFFCO to unlock the valuation of its investment in
IFFCO-TOKIO by sale of its part shareholding. This transaction would help IFFCO
in raising the required capital to focus on more agri-businesses and to better
serve the interests of the Indian farmers in the fast changing agriculture
sector in India," IFFCO Managing Director U.S. Awasthi was quoted as
saying in the statement. The Total Investment
& Insurance Solutions
Awasthi
further said: "Even after the divestment, IFFCO will continue to exercise
control in the business affairs of IFFCO-TOKIO in compliance with IRDA's
Guidelines on 'Indian Owned and Controlled' Insurance Companies." The Total Investment & Insurance Solutions
The
Chief Executive of Tokio Marine Asia Arthur Lee said: "The additional
share purchase is in line with Tokio Marine Group's international business
strategy to achieve sustainable growth and profit expansion as well as enhance
diversified business portfolio through capturing growth opportunities in
emerging countries." The Total
Investment & Insurance Solutions
As
on March 31, 2017, IFFCO and its associate IPL were holding 72.64 per cent and
1.36 per cent paid up share capital in IFFCO TOKIO, whereas Tokio Marine was
holding 26 per cent paid up share capital in the company. The Total Investment & Insurance Solutions
Post
the share sale, IFFCO's holding in IFFCO Tokio General will be 51 per cent and
Tokio Marine's will be 49 per cent.The Total
Investment & Insurance Solutions
No comments:
Post a Comment