Australian firm to raise stake in Raheja QBE insurance to 49%

Australia's QBE Group will raise stake in Raheja QBE General Insurance Company to 49 per cent by buying an additional 23 per cent from its existing partner Prism Cement for Rs 103 crore.
"Prism Cement has agreed, in principle, to sell 23 per cent of its holding in the paid-up capital of Raheja QBE General Insurance Company, to its existing partner in Raheja QBE, namely the QBE Group, Australia, for a consideration of approximately AUD 21,500,000 (about Rs 103 crore)," the company said in a filing to the BSE.
With this, the Australian partner's stake in Raheja QBE General Insurance Company would rise to 49 per cent, while Prism Cement will hold remaining 51 per cent.

The Indian government has earlier this year allowed FDI up to 49 per cent in the domestic insurance sector.
The proposed transaction is subject to execution of definitive documents and applicable approvals," it said.
"Once the proposed transaction is consummated, the company's shareholding in Raheja QBE shall stand reduced from 74 per cent to 51 per cent," Prism Cement said after a board meeting.
Raheja QBE General Insurance Company is a joint venture company promoted by Prism Cement, India, and QBE Holdings (AAP) Pty, a wholly-owned subsidiary of QBE Insurance Group, Australia. The company has been registered with the insurance regulator IRDA as general insurer from December 2008.

Shares of Prism Cement were trading at Rs 99.80, up 2.04 per cent fro the previous close on BSE.