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| Exchange Disseminated Time 25/12/2015 11:34:25 | Tube Investments of India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 25, 2015, has approved the divestment of 4,18,32,798 equity shares of the face value of Rs.10/- each held by the Company in its general insurance subsidiary viz., Cholamandalam MS General Insurance Company Limited ("Chola MS"), constituting 14% of the equity share capital of Chola MS, to its joint venture partner viz., Mitsui Sumitomo Insurance Company Limited, Japan ("MSI") for a consideration of Rs.211/- per equity share, aggregating Rs.882.67 Crores.
Further, the Company has informed that MSI and the Company have exchanged necessary letters of offer and acceptance with regard to the purchase and sale respectively of the shares as stated above ("Transaction"), which will be followed by signing of related agreements.
The proposed Transaction will be subject to applicable Government and regulatory approvals.
Post-closing of the Transaction, the shareholding of MSI in Chola MS will increase from the existing 26% to 40% and the Company's shareholding will be at about 60% (existing: ~74%). |
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