One 97 Communications cancels purchase of Raheja QBE General Insurance

One 97 Communications stated on Sunday in a BSE filing that its share purchase agreement to acquire 100 percent of Raheja QBE General Insurance Company Limited has been terminated due to the fact that the transaction could not be completed within the agreed time period.

Our associate company, Paytm lnsuretech Private Limited, has entered a share purchase agreement to acquire 100% of Raheja QBE General Insurance Company Limited.

The agreement has automatically been terminated as the share sale and purchase transaction has not been completed within the time period anticipated by the parties under the agreement, according to the company in a filing.

The company stated that it is still bullish on its general insurance roadmap. It said that Paytm is bullish on its roadmap for general insurance, and we intend to seek requisite approvals for a new general insurance license, wherein we hold a 74% majority shareholding upfront.

The deal was inked on July 6, 2020. Paytm's deal was touted to mark its entry into the general insurance space to help it democratise general insurance services in India.

Prism Johnson, who agreed to sell its stake when the deal is done, has approved the divestment of its entire holding of 51% of the paid-up equity share capital in Raheja QBE General Insurance Company Limited, a material subsidiary of the company, and remaining holdings owned by One 97 Communications Limited for an aggregate consideration of Rs 289.68 crore.