Ageas International, a multinational insurance company, signed an agreement on Wednesday i.e. November 14, 2018, with Royal Sundaram General Insurance Company, according to which it will be acquiring 40% stake in the latter for Rs. 1520 crores.

Royal Sundaram General Insurance Co. is a city-based company which is promoted by Sundaram Finance Limited. Sundaram Finance seeks to divest its 25.90% stake for Rs. 984 crores out of 75.90% stake it is holding, thus retaining 50%.

As per the agreement, of the remaining 50% stake, 10% will be held by Indian shareholders and Ageas International will take up the 40%.

“For the next phase of growth, we are delighted to be partnering with Ageas, whose global experience, including in several Asian countries, will be an asset.  Ageas is unique in its approach of working through local partnerships and joint ventures across Asia and we believe this can create significant value for Royal Sundaram,” Managing Director of Sundaram Finance Limited, T.T. Srinivasaraghavan was quoted as saying.

The deal was lead by J. Sagar Associates for Royal Sundaram and by AZB & Partners for Ageas International.

The transaction which is expected to close in the first quarter of 2019, is subject to certain regulatory approvals, including one from the Insurance Regulatory and Development Authority of India (IRDAI).