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Kotak Mahindra Bank to Acquire British Partner Old Mutual for Rs. 1292 Crore
April 29, 2017
Kotak Mahindra Bank has today announced that it will be absorbing the entire 26% equity that its partner Old Mutual has in the life insurance wing at the price of Rs. 1,292.7 crore.
Although the buyout is contingent on regulatory and other approvals, if it passes through, then the Mahindra Group will get a 100% equity in Kotak Life.
It was the year 2001 when the life insurance joint venture was formed in which Kotak got 74% equity and Old Mutual the remaining 26%.
The speculation is the fact that it’s no co-incidence that the bank decided to make the acquisition within a month of announcing its plans to raise Rs. 5,000 crore through a share sale.
