The sale of the entire stake of Aditya Birla Insurance Brokers Limited (ABIBL) to Edme Services Private Limited has been approved by the Board of Directors of its parent, Aditya Birla Capital Limited (ABCL), subject to requisite approvals.
Currently, ABCL along with its nominees hold a little more than 50% of the issued and paid up share capital of ABIBL, while the remaining shares are currently owned by Infocyber India Private Limited.
The sale of ABIBL would include the entirety of ABCL’s 25,65,103 equity shares of Rs.10 each, and the 25,64,897 equity shares of the same monetary value held by Infocyber, at an enterprise value of Rs. 4,550 million. This sale is on a cash-free and debt-free basis.
So, under the two agreements, Edme Services Private Limited, which is part of the Samara Capital Group and an affiliate of the Samara Alternate Investment Fund, is set to acquire 100% of ABIBL.
According to the selling contract issued by ABCL, both them and Infocyber will receive an additional consideration that after the completion of 5 years, ABCL is entitled to receive 50% of any consideration paid by Edme Services Private Limited in lieu of its acquisition of 100% of ABIBL’s issued and paid-up share capital.
The proposed transaction is pending approval from the Insurance Regulatory and Development Authority of India (IRDAI).
