Paytm not to acquire Raheja QBE; to apply for new general insurance license
Paytm Insuretech -- an associate company of One97 Communications -- and Prism Johnson Ltd, who had entered into an agreement, wherein the former would have bought 51 per cent stake of the latter in Raheja QBE General Insurance, have decided to terminate the agreement as the share sale and purchase transaction was not consummated within the time period envisaged by the parties under the agreement.
In exchange notifications, both the companies said,” As the share sale and purchase transaction has not been consummated within the time period envisaged by the parties under the said agreement, the agreement has automatically terminated”.
One97 Communications, which is the parent company of Paytm, said, they remain bullish on their roadmap for general insurance and intend to seek requisite approvals for a new general insurance license, wherein they hold a 74 per cent majority shareholding upfront.
On the other hand, Prism Johnson will continue to evaluate the future prospects of their investment in Raheja QBE general insurance from time to time.
In 2020, Paytm, along with Vijay Shekhar Sharma, had entered into an agreement, wherein they were supposed to acquire Prism Johnson’s 51 per cent stake in Raheja QBE General Insurance for Rs 289.68 crore. Prism Johnson has 51 per cent stake in the general insurance company and the rest is owned by QBE Australia. Paytm was supposed to acquire Prism Johnson’s 51 per cent and QBE Australia’s 49 per cent stake in Raheja QBE to become 100 per cent owner for Rs 568 crore to expand its footprints in the financial services business.