Sanjiv Bajaj, CMD, Bajaj Finserv said the firm is not looking for another partner as it signed Share Purchase Agreements for the acquisition of 26 per cent stake owned by Allianz SE of Germany in its insurance businesses Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.
"See no change at all at any operational level. No leadership change or operational changes at either business," Bajaj told CNBC-TV18.
"A great win-win deal for both partners. We don't need another partner, both companies are perfectly capable of going solo. The companies are well capitalised and have built strong capabilities," added Bajaj.
He said he hopes IRDAI, CCI's approvals for the deal to come in the next few months.
He said that both the life and general insurance arms of the company will go public in due course of time.
Bajaj said that while financial year 2027 will be too early to consider listing both the businesses, the board of both the companies will "seriously consider" going public at a suitable time.
The execution of the Share Purchase Agreements (SPAs) marks the end of a 24-year relationship and also the culmination of constructive and amicable discussions to ensure a seamless transfer of the stake of Allianz.
The acquisition of Allianz SE's stake will increase Bajaj Group's ownership in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) to 100 per cent from the current 74 per cent, Bajaj Finserv said in a statement.
It said the acquisition is subject to regulatory approvals, including a nod from the Competition Commission of India and the Insurance Regulatory and Development Authority of India.
The agreed consideration for 26 per cent stake in BAGIC and BALIC is Rs 13,780 crore and Rs 10,400 crore, respectively, it said.
The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1 per cent and reclassification of Allianz from being a promoter to investor, it said.
Under the terms of the SPA, it is proposed that Bajaj Finserv Ltd will acquire approximately 1.01 per cent, Bajaj Holdings and Investment Ltd approximately 19.95 per cent and Jamnalal Sons Pvt. Ltd. approximately 5.04 per cent, aggregating to 26 per cent in each of the insurance companies, it said.
Post-acquisition, BFS stake will be 75.01 per cent in both companies.
Once the joint ventures are terminated under the terms of the SPA, the Bajaj Group and Allianz aim to independently pursue their insurance strategies in India.
The acquisition marks a significant milestone in the Bajaj Group's journey to advance next-gen insurance solutions, driven by new technologies, to serve Indian consumers in multiple geographies, it said.
It also brings the two insurance ventures entirely into the fold of the Bajaj Group, one of India's most respected brands, the statement from Bajaj Finserv said.
Allianz and Bajaj are fully committed to ensuring a smooth transition in a manner that the interests of policyholders, intermediaries and other stakeholders are least affected, it said.
Bajaj Finserv and Allianz have also entered into agreements that will ensure continuity of reinsurance and other services during the transition, the statement added.
With inputs from PTI
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