A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has agreed to picked up 9.99% stake in Aditya Birla Health Insurance Co. Ltd. (ABHI) for ₹665 crore. The boards of Aditya Birla Capital Ltd. (ABCL) and ABHI have approved the proposal.
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The investment is subject to regulatory and other statutory approvals.
ABHI is a 51:49 joint venture between ABCL and Momentum Metropolitan Strategic Investments (Pty) Ltd., a wholly owned subsidiary of South Africa-based Momentum Metropolitan Holdings Ltd.
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Upon completion of the transaction, ABCL will hold 45.91% stake and MMH 44.10%, respectively, in ABHI.
ABHI plans to use this capital to drive growth in the health insurance market in India.
Vishakha Mulye, Chief Executive Officer, ABCL said, “In recent times, health has become a key concern for all. With its differentiated Health - First model, ABHI is well-positioned to address this concern, while also protecting health through insurance. An investment from ADIA underscores the strong and unique business model of ABHI and the franchise we have created.”