 "QBE Group to increase stake in Raheja QBE General Insurance to 49%")
Prism Cement today informed the exchanges that it would sell 23 per cent of its stake in Raheja QBE General Insurance to its existing partner in Raheja QBE, namely the QBE Group, Australia, for AUD 21,500,000 (equivalent to approximately Rs 103 crore), valuing the company at Rs 447.8 crore.
Prism Cement holds 74 per cent stake in the insurance venture, whereas QBE Group holds 26 per cent, which was earlier the maximum permissible foreign holding in an insurance company. The new Insurance Act has now increased maximum holding permissible to 49 per cent.
The proposed transaction is subject to execution of definitive documents and applicable approvals. Once the proposed transaction is completed, the Prism Cement's shareholding in Raheja QBE would stand reduced from 74 per cent to 51 per cent.
In the first quarter ended June 30, 2015, Raheja QBE had a profit before tax of Rs 5.1 crore compared to Rs 1.1 crore in same quarter previous fiscal. Its net earned premium was Rs 6.78 crore, compared to Rs 5.24 crore.