Paytm parent company One97 Communications and CEO Vijay Shekhar Sharma will acquire Mumbai-based Raheja QBE General Insurance Company. The current owner Prism Johnson disclosed the purchase in a BSE filing on Monday. This was reported by Business Standard.
Raheja QBE is a joint venture between cement-maker Prism Johnson and Australian insurance group QBE. For a total consideration of almost Rs 290 crore, Prism Johnson will divest:
- Its own 51% stake in the company to QORQL Pvt. Ltd., a company in which Sharma holds a majority stake, and
- The remaining 49% stake, held by QBE, to One97 Communications
The sale is expected to be closed by March 31, 2021. The divestment will result in the termination of Prism Johnson’s joint venture with Australia’s QBE in the general insurance business in India.
Raheja QBE provided coverage health, home, and motor insurance, and also provided commercial property insurance. It had a revenue of almost Rs 190 crore in FY19-20, with a net worth of Rs 154 crore.