The Board of Directors of Apollo Energy Company, an Apollo Hospitals Group Company, has accepted the divestment of 23.3% shareholding in Apollo Munich Health Insurance Company (Apollo Munich) to its joint venture partner, Munich Re of Germany for Rs 163.5 crore.
The planned transaction values Apollo Munich at Rs 703 crore. The finishing point of the proposed transaction is subject to appropriate regulatory approvals and implementation of usual agreements, which is expected to be finished at the end of the first section of 2016.
Post consummation of the transaction, Apollo Hospitals Group’s shareholding in Apollo Munich shall stand decrease from 74.4% to 51.1%. Likewise, Munich Re’s shareholding in Apollo Munich shall move to 48.7% and 0.2% will be held by workers. Apollo Hospitals shall continue to hold its stake in Apollo Munich.