Kotak Mahindra is planning to buy out old Mutual stake in Kotak life in order to buy 100% stake in Kotak Life. As of now, Kotak Life is a joint venture of Kotak Mahindra and Old Mutual. With Old Mutual holding equity worth 26% of the Kotak Life, Kotak Mahindra is planning to buy this 26% and get a 100% equity hold in Kotak Life.
Kotak Life is a Joint Venture and this company created a long-life bond between the two companies called Kotak Mahindra and Old Mutual. Both of these companies were holding Kotak Life from past 16 years and really enjoyed working together as a team. Both of these Kotak Mahindra and Old Mutual have gained significant fame in the Life Insurance Industry.
According to the latest news, Kotak Mahindra is planning to buy out 26% equity shares held by Old Mutual. This agreement will be finalized by both the parties and Kotak Mahindra is ready to pay off 1,292.7 crores for buying 26% stake.
Further to this, Kotak Mahindra confirmed its customers that it will follow government rules and regulation to buy 26% stake and make sure the agreement strengthens their reputation in the Life Insurance Industry. The deal will be finalized as per the rules and regulations laid by the finance sector. Once this deal is finalized and every documentary work is completed, Kotak Mahindra will be the whole sole shareholder or equity shareholder of Kotak Life.
According to the reports from the finance sector, the Kotak Life network worth Rs 1,825 crore is the result of joint efforts of Kotak Mahindra and Old Mutual. Both of these companies really had a great time working together. Kotak Mahindra and Old Mutual worked hard to get the best positions in the Life Insurance Industry as well.
For this deal, Gaurang Shah, President of Asset Management, Insurance and International Business of Kotak Mahindra Bank said that old Mutual has always been an amazing business partner to work with.
Till now, Kotak Life was a joint venture company but this deal will give Kotak Mahindra 100% hold in Kotak Life.