Edelweiss Financial services prefer to quit
Edelweiss Financial services have a 70% stake in Gallagher Insurance Brokers Limited, which is a subsidiary engaged in the industry of insurance broking business. Edelweiss financial services have determined to exit the insurance broking business by selling its stake, making Gallagher the holder of the whole 100% stake.
As per the agreement, the paid-up share capital of the Gallagher Insurance brokers is to be sold for a consideration of Rs 307.60 crore which will be split up into 3700000 equity shares of Rs 10 each. The financial services will furthermore be authorized to obtain deferred contingent consideration based on the future revenue of Edelweiss Gallagher Insurance Broker.
They shall deliver to the company flexibility of relocation of Capital and provide chances for the advancement of business in India. But it is accountable to the approval of the Insurance Regulatory and Development Authority of India, and the completion of all the obligations and limitations provided in the agreement between the parties.