Allianz Exits from Insurance JV, Bajaj Finserv To Buy 26% Stake in 2 JVs for Rs24,180 Crore
Moneylife Digital Team 18 March 2025
Bajaj Finserv Ltd decided to buy the entire 26% stake of Allianz SE of Germany in the Bajaj group's insurance joint ventures (JVs), Bajaj Allianz General Insurance Company Ltd (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). Bajaj Finserv is paying Rs24,180 crore to Allianz for the 26% stake in the group's JVs.
 
In a statement, Bajaj Finserv says the acquisition of Allianz SE's stake will increase Bajaj group's ownership in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance to 100% from the current 74%. 
 
"The 24-year-old joint venture agreements between the Bajaj group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a promoter to investor. The agreed consideration for 26% stake in BAGIC and BALIC is Rs13,780 crore and Rs10,400 crore, respectively," the company says.
 
Under the terms of the share purchase agreement (SPA), Bajaj Finserv will acquire about 1.01%, Bajaj Holdings and Investment Ltd around 19.95%, and Jamnalal Sons Pvt Ltd about 5.04%, aggregating to 26% in each of the insurance companies. Post-acquisition, Bajaj Finserv's stake will be 75.01% in BAGIC and BALIC. 
 
"Once the JVs ventures are terminated under the terms of the SPA, the Bajaj group and Allianz aim to independently pursue their insurance strategies in India," Bajaj Finserv says. Further, Bajaj Finserv will also buy the entire stake held by Allianz in Bajaj Allianz Financial Distributors Ltd (BAFDL), a 50:50 JV. Bajaj Finserv will buy 1.2mn (million) shares of face value of Rs10 each in BAFDL for about Rs12.5 crore from Allianz.
 
Comments
BR
1 month ago
Will it survive as even its employees are bad ?
BR
1 month ago
Will policy holders be allowed to quit on their terms ? We trusted JV but do not hope to get the same Pension & Sum Assured from the new single company. It once failed miserably & IRDA made it to keep Rs 400 crores as secority. Company must write causes, reasons, effects, of Split & how the single company will perform. Policy holders of over ten yrs 20 yrs must be allowed to quit.
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