(Adds details, chairperson’s quote)
BENGALURU, June 19 (Reuters) - Housing Development Finance Corp Ltd (HDFC) on Wednesday said it will buy a 51.2% stake in Apollo Hospital Group’s joint venture, Apollo Munich Health Insurance Company for 13.47 billion rupees ($193.40 million).
German reinsurance company Munich Re, which formed the joint venture with Chennai-based Apollo Hospitals, will pay 2.94 billion rupees to Apollo Hospitals Enterprise Ltd and Apollo Energy Ltd as termination fee, HDFC said in an exchange filing here
HDFC added that it will buy 50.8% stake in Apollo Munich Health Insurance for 13.36 billion rupees from Apollo Hospitals Group and 0.4% stake held by some employees for 108.4 million rupees.
“The funds from the divestment will enable us to focus on investing and growing our core healthcare business,” said Shobana Kamineni, chairperson, Apollo Hospitals.
Post the deal, Apollo Munich is proposed to be merged with HDFC’s general insurance unit, HDFC ERGO General Insurance Company, Mumbai-based HDFC said. ($1 = 69.6467 Indian rupees) (Reporting by Chandini Monnappa in Bengaluru; Editing by Rashmi Aich)