Home-grown PE firm True North to acquire Religare Health Insurance for Rs 1,300 crore
NEW DELHI: Religare Enterprises Limited (REL), that owns non-banking finance and healthcare insurance business of Malvinder Mohan Singh and Shivinder Mohan Singh has decided to divest its health insurance business --Religare Health Insurance to home grown private equity firm – True North formerly India Value Fund for about Rs 1,300 crore.
REL that owns 100 % stake in the health insurance venture will raise much needed fund to infuse fresh capital in the non-banking finance arm Religare Finvest Limited (RFL), which is burdened by the burgeoning non-performing assets.
“The negotiation with True North is complete and we are in the process of signing the agreement anytime now,” said a person involved in the deal. “We are hoping to sign the deal by today,” he added.
True North, the home grown private equity firm outbid Warburg Pincus and one more foreign PE firm because of its domicile advantageous position, said the person quoted above.
“Religare wanted to sell the control as it needs funds to revive its NBFC business. Warburg Pincus and other funds couldn’t have acquired more than 49% stake in Religare Health Insurance due to sectoral cap. And that tilted the balance in favour of True North,” said the person. While there was an Indian conglomerate that was also in the race but could not match the number.
ET reported the news on January 7.
Spokespersons of Religare and True North declined to comment.
REL that owns 100 % stake in the health insurance venture will raise much needed fund to infuse fresh capital in the non-banking finance arm Religare Finvest Limited (RFL), which is burdened by the burgeoning non-performing assets.
“The negotiation with True North is complete and we are in the process of signing the agreement anytime now,” said a person involved in the deal. “We are hoping to sign the deal by today,” he added.
True North, the home grown private equity firm outbid Warburg Pincus and one more foreign PE firm because of its domicile advantageous position, said the person quoted above.
“Religare wanted to sell the control as it needs funds to revive its NBFC business. Warburg Pincus and other funds couldn’t have acquired more than 49% stake in Religare Health Insurance due to sectoral cap. And that tilted the balance in favour of True North,” said the person. While there was an Indian conglomerate that was also in the race but could not match the number.
ET reported the news on January 7.
Spokespersons of Religare and True North declined to comment.
