 "Apollo Hospitals sells 23% stake in Apollo Munich to German partner")
Apollo Energy Company Ltd, an Apollo Hospitals Group Company, has divested its 23.3 percent stake in Apollo Munich Health Insurance Company Ltd to its joint venture partner, Munich Re of Germany, for Rs 163.5 crore. The proposed transaction values Apollo Munich at Rs 703 crore.
Completion of the proposed transaction is subject to applicable regulatory approvals and execution of customary agreements, which is expected to be completed at the end of the first quarter of 2016. Post consummation of the transaction, Apollo Hospitals Group’s shareholding in Apollo Munich will be reduced from 74.4 percent to 51.1 percent. Correspondingly, Munich Re’s shareholding in Apollo Munich will move to 48.7 percent, with 0.2 percent being held by employees.
Dr Prathap C Reddy, chairman, Apollo Munich, and Chairman, Apollo Hospitals Enterprise Ltd, said, “Insurance is a key element for making quality healthcare facilities accessible to the masses. The show of confidence from our JV partner will go a long way in helping the Group achieve its vision of ‘Healthcare for all’.”
The opportunity for Munich Re to increase its shareholdings was provided through the decision of the Indian Government in March 2015 to increase the foreign direct investment cap in the insurance sector from 26 percent to 49 percent. With the increase in shareholding, Munich Re strengthens its presence in India which is one of the key markets for the company.
Doris Hopke, the member of the Munich Re Board of Management responsible for Munich Health, said, “India’s population structure, increased life expectancy and positive economic development will usher in a steep rise in medium-term healthcare spending. Since its start in 2007, Apollo Munich Health Insurance has shown exceptional, often above-market growth rates. With the increased stakeholding, we are strengthening our position for sustainable and profitable growth in this region.”
Completion of the proposed transaction is subject to applicable regulatory approvals and execution of customary agreements, which is expected to be completed at the end of the first quarter of 2016. Post consummation of the transaction, Apollo Hospitals Group’s shareholding in Apollo Munich will be reduced from 74.4 percent to 51.1 percent. Correspondingly, Munich Re’s shareholding in Apollo Munich will move to 48.7 percent, with 0.2 percent being held by employees.
Dr Prathap C Reddy, chairman, Apollo Munich, and Chairman, Apollo Hospitals Enterprise Ltd, said, “Insurance is a key element for making quality healthcare facilities accessible to the masses. The show of confidence from our JV partner will go a long way in helping the Group achieve its vision of ‘Healthcare for all’.”
The opportunity for Munich Re to increase its shareholdings was provided through the decision of the Indian Government in March 2015 to increase the foreign direct investment cap in the insurance sector from 26 percent to 49 percent. With the increase in shareholding, Munich Re strengthens its presence in India which is one of the key markets for the company.
Doris Hopke, the member of the Munich Re Board of Management responsible for Munich Health, said, “India’s population structure, increased life expectancy and positive economic development will usher in a steep rise in medium-term healthcare spending. Since its start in 2007, Apollo Munich Health Insurance has shown exceptional, often above-market growth rates. With the increased stakeholding, we are strengthening our position for sustainable and profitable growth in this region.”
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