September 3, 2021 2:39:35 pm
Shares of Exide Industries surged 15 per cent on Friday after HDFC Life Insurance announced that it will acquire Exide Life Insurance for Rs 6,687 crore.
The scrip surged 14.98 per cent to Rs 204.90 apiece on the National Stock Exchange (NSE), while on the BSE it jumped 13.86 per cent to Rs 202.95 per share.
Earlier in the day, HDFC Life informed the stock exchanges that it will acquire 100 per cent of the share capital of Exide Life Insurance for a total consideration of Rs 6,687 crore. of which Rs 725,97,77,930 will be payable in cash and the balance by way of issue 8,70,22,222 equity shares of face value of Rs 10 of the Company issued at a price of Rs 685 per share to Exide Industries.
The completion of the acquisition is subject to customary conditions such as receipt of all regulatory and other approvals.
“The Board of Directors of HDFC Life Insurance Company Limited (“HDFC Life”), Exide Industries Limited (“Exide Industries”) and Exide Life Insurance Company Limited (“Exide Life”), at their respective meetings held today, approved the transaction involving the sale of Exide Life Insurance to HDFC Life,” the HDFC Life statement said.
It further informed that the process for merger of Exide Life into HDFC Life will be initiated on completion of the acquisition.
The closure of the proposed transaction will inter alia be subject to approval by relevant regulators including the Insurance Regulatory and Development Authority of India (IRDAI), Competition Commission of India (CCI), National Company Law Tribunal (NCLT), stock exchanges and approval by the shareholders of HDFC Life and Exide Industries, the statement said.
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