Housing Development Finance Corp Ltd (HDFC) on Wednesday said it will buy a 51.2 per cent stake in Apollo Hospital Group's joint venture, Apollo Munich Health Insurance Company for Rs. 1,347 crore ($193.40 million).
German reinsurance company Munich Re, which formed the joint venture with Chennai-based Apollo Hospitals, will pay Rs. 294 crore to Apollo Hospitals Enterprise Ltd and Apollo Energy Ltd as termination fee, HDFC said in an exchange filing.
HDFC added that it will buy 50.8 per cent stake in Apollo Munich Health Insurance for Rs. 1,336 crore from Apollo Hospitals Group and 0.4 per cent stake held by some employees for Rs. 10.84 crore.
"The funds from the divestment will enable us to focus on investing and growing our core healthcare business," said Shobana Kamineni, chairperson, Apollo Hospitals.
After the deal, Apollo Munich is proposed to be merged with HDFC's general insurance unit, HDFC ERGO General Insurance Company, Mumbai-based HDFC said.