Mumbai, April 28 (IANS) Kotak Mahindra Bank on Friday said it has entered into an agreement to purchase the entire 26 per cent equity held by Old Mutual plc, UK, in Kotak Mahindra Old Mutual Life Insurance Ltd (Kotak Life) for Rs 1,292.7 crore.
In a statement issued here, Kotak Mahindra Bank said it will buy out the stakes in line with its philosophy to deepen and expand in Indian financial services sector.
The deal is subject to regulatory approvals, the statement said.
After the transaction is completed, Kotak Mahindra Group will hold 100 per cent of the equity shareholding of Kotak Life.
Currently, the life joint venture is between Kotak Group and Old Mutual.
The networth of Kotak Life stands at Rs 1,825 crore as on March 31.
“Kotak Mahindra Group and Old Mutual have enjoyed a fruitful relationship over the past 16 years and built a successful and trusted brand in the life insurance industry in India. Old Mutual has been a valued business partner,” said Gaurang Shah, President-Asset Management, Insurance and International Business, Kotak Mahindra Bank.