Abu Dhabi Investment Authority (ADIA), the sovereign wealth fund of the emirate state will invest Rs 665 crore in Aditya Birla Health Insurance (ABHI), for a 9.99% stake valuing the company at Rs 6650 crore. The transaction has been approved by the board of directors of Aditya Birla Capital Ltd (ABCL), the holding company for financial services of the aluminium to telecom conglomerate, the company said.
ET had reported the possibility of the deal in its July 18 edition.
“Upon the completion of the transaction, ADIA will own a 9.99% stake, ABCL will hold a 45.91% stake and MMH a 44.10% stake, respectively, in ABHI. ABHI is a 51:49 joint venture between Aditya Birla Capital Limited and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly owned subsidiary of South African based Momentum Metropolitan Holdings Limited (MMH). The completion of the deal is subject to statutory and regulatory approvals, including the approval of the Insurance Regulatory and Development Authority of India (IRDAI).
“ABHI plans to use this capital to drive its growth in the health insurance market in India,” the company said.
ABCL CEO Vishakha Mulye said, “the investment from ADIA underscores the strong and unique business model of ABHI and the franchise we have created.”
Hamad Shahwan Al Dhaheri, executive director of the private equities department at ADIA, said the fund sees significant potential in India’s health insurance sector as penetration levels increase, driven by higher awareness and broader economic growth. “Aditya Birla Health Insurance has a strong management team, a wellness-first product offering and a differentiated distribution model. We look forward to partnering with Aditya Birla Capital and Momentum Metropolitan Holdings to support the next phase of ABHI’s growth,” he said.
Source: Economic Times