Prism Johnson to Exit Raheja QBE Joint Venture With Rs 324 Crore Stake Sale

Prism Johnson Limited ( (IN:PRSMJOHNSN) ) just unveiled an announcement.

Prism Johnson Limited’s board has approved a share purchase agreement to divest its entire 51% stake in Raheja QBE General Insurance Company Limited to existing partner QBE Holdings (AAP) Pty Limited for an aggregate consideration of Rs. 324 crore, subject to customary adjustments. The transaction, which requires shareholder, IRDAI and other regulatory approvals, will terminate Prism Johnson’s general insurance joint venture with Australia’s QBE Group in India and result in Raheja QBE ceasing to be a subsidiary, marking the company’s exit from this insurance business.

The deal underscores a strategic shift away from the general insurance segment, potentially allowing Prism Johnson to redeploy capital toward its core operations in building materials and related areas. For QBE, increasing its stake to full ownership of Raheja QBE may enable greater strategic control in the Indian general insurance market, while Prism Johnson stakeholders will see the unwinding of a material unlisted subsidiary and a refocus of the group’s portfolio.

More about Prism Johnson Limited

Prism Johnson Limited is a diversified Indian company with interests spanning building materials and related businesses. Through its subsidiaries and joint ventures, the group has also participated in financial services segments such as general insurance, targeting the domestic market alongside international partners.

Average Trading Volume: 44,020

Technical Sentiment Signal: Hold

Current Market Cap: 63.6B INR

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