Board approves sale of Chola MS stake for Rs 883 crore

CHENNAI: The Board of Murugappa Group company Tube Investments has approved sale of 14 per cent stake in Cholamandalam MS General Insurance for Rs 882.68 crore to its Japanese JV partner, Mitsui Sumitomo Insurance Company.

"The Board of Directors (of Tube Investments) at its meeting held today has approved the sale of 14 per cent shareholding in Cholamandalam MS General Insurance to Mitsui Sumitomo Insurance for a consideration of Rs 882.67 crore," the city-based company said in a statement.

The transaction is subject to necessary "regulatory approvals".

Currently, Mitsui Sumitomo Insurance holds 26 per cent stake in Chola MS, and with the additional 14 per cent, it goes up to 40 per cent.

"I am delighted that MSI is increasing its stake in Chola MS to 40 per cent," said Tube Investments chairman M M Murugappan.

"This will further strengthen our relationship with MSI and help realise our vision in making Chola MS the most respected general insurer in India."

Mitsui Sumitomo Insurance Company MD and CEO, Karasawa said: "We are very pleased that the Murugappa Group accepted our offer to increase our stake in Chola MS."

He added: "We will cooperate with Murugappa to increase the value of Chola MS through this transaction and provide further safety and security to customers in India."