After Manipal Education and Medical Groups (MEMG) foray in the insurance sector, the company is going to buy a major stake in its joint venture, which it co-owns with Cigna.
MEMG, which works in the education and health sector, said in its statement that the company will increment stakeholding in health insurance firm to 51 per cent, as reported by daily news, VC Circle.
The conglomerate, TTK Group which has partnered with Cigna Corporation and initiated a joint venture, will leave its stakes as part of the deal. On the other hand, Cigna will hold to its shares that is, 49 per cent and with the coming of a new partner, the company will be known as ManipalCigna Health Insurance Company.
Insurance Regulatory and Development Authority of India (IRDAI) has given approval to this business deal.
Any financial details have not been disclosed yet. However, it was informed that Manipal Group will sow extra money up to INR 500 crore to increase its share, as reported by daily news, Times of India.
In September 2018, MEMG had bought 16.04 per cent shares from TTK Group. Following that transaction, MEMG and TTK concertedly held 51 per cent stake while the former owned 34.96 per cent.