One97 Communications said in a BSE filing on Sunday that its share purchase agreement for a 100 per cent acquisition of Raheja QBE General Insurance Company Limited had been canceled because its transaction could not be completed within the agreed time.
“Our subsidiary Paytm lnsuretech Private Limited has entered into a share purchase agreement for a 100% acquisition of Raheja QBE General Insurance Company Limited.
As the sale and purchase of shares have not been completed within the time stipulated by the parties under the said agreement, the agreement has been terminated automatically, “the company said in a filing.
The company said it is still bullish on its general insurance roadmap. “Paytm remains bullish on its roadmap for general insurance, and we want to seek the necessary approvals for a new general insurance license, where we advance 74% majority shareholding,” it said.
The agreement was signed on July 6, 2020 Paytm’s agreement was aimed at entering the general insurance space to help “democratize general insurance services” in India.
Prism Johnson, who agreed to sell his stake when the deal was signed, said: “The company’s board of directors today approved the removal of the entire holding of 51% of the paid-up equity share capital in Raheja QBE. General Insurance Company Limited (‘RQBE’). 289.68 crore for the overall consideration to a component subsidiary, QORQL Pvt. Ltd., a technology company, Vijay Shekhar Sharma’s majority shareholding and the remaining Paytm (owned by One97 Communications Limited). “
Read more: Vijay Shekhar Sharma, Paytm to buy general insurer Raheja QBE to expand financial offer