Safecrop Holdings to purchase Star Health & Allied Insurance
Safecrop Holdings Ltd, a consortium with WestBridge AIF, noted investor Rakesh Jhunjhunwala and Madison Capital today signed 'definitive agreements' to purchase city-based private health insurer Star Health and Allied Insurance Company for an 'undisclosed sum'.
The existing shareholders of Star Health Insurance include Star Health Investments and funds managed by ICICI Venture, Tata Capital and Apis Partners, a press release said.
"The transaction is subjected to regulatory and certain other approvals", the statement said.
"We are really excited about Star Health, a dominant market leader in the retail health insurance industry. We believe the retail health insurance industry will continue to grow at a healthy pace in the coming decade, driven by increasing penetration", WestBridge Capital, Co-Founder and Managing Director Sumir Chadha said.
"This (The acquisition) aligns well with WestBridge's investing philosophy and long-time horizon. We are highly confident of Star's business model and believe that Star (Health) will continue to lead the retail health insurance space", he said.
Kotak Investment Banking, Evercore and Mizuho Securities (Singapore) were the financial advisors to Star Health.
Rakesh Jhunjhunwala said "the management of Star Health has built its leadership position in private health insurance through innovation, perseverance and excellence. I believe health insurance is a key tool for every citizen towards financial stability.
I am proud to be associated with Star Health and believe it is best equipped to serve the country's health insurance needs", he added.
Star Health Insurance as of March 31, 2018 has a market share of 10.6 per cent. It has over 11,000 employees.
The company had Profit After Tax of Rs 171 crore and net worth of Rs 960 crore as on March 31, 2018.
Nishith Desai Associates and Trilegal participated on behalf of the purchasers, while Platinum Partners took part in the transaction on behalf of Star Health, it added.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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