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HDFC Divests 26% stake to Ergo International

October 30, 2007

Housing Development Finance Corporation (HDFC) has agreed to sell 3,25,00,000 equity shares of Rs 10 each of HDFC General Insurance Company (HGICL) representing 26% of the paid-up equity capital to Ergo International Ag. Consequent to the said sale, the corporation would hold 74% of the total paid-up equity capital of HGICL.

The new partnership enables HDFC to successfully grow their existing general insurance operations and further leverage their outstanding brand and distribution strength. Entering the joint venture with HDFC underlines the ERGO Insurance.

Group’s international expansion strategy and offers a direct entry into the Indian general insurance market. Andreas Kleiner, Member of Board of ERGO International AG responsible for Asia, expects a very successful and longstanding cooperation with HDFC.

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