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M. Ramesh

Chennai , March 4

THE Ceylinco group of Sri Lanka is expected to pick up a 20 per cent stake in the Chennai-based insurance broking firm, Armour Consultants.

Ceylinco is the largest financial sector player in Sri Lanka, with interests in insurance and banking. Armour Consultants is the non-life broking arm of Shriram group of Chennai. It has a paid-up equity capital of Rs 1.5 crore.

Fresh shares are to be issued by Armour Consultants to Ceylinco, subject to regulatory approvals. Ceylinco acquiring a stake in Armour Consultants is to strengthen the ties between it and the Shriram group.

The Chairman of the Shriram group, Mr R. Thyagarajan, told Business Line today that the group has close links with Ceylinco. For instance, Ceylinco and Shriram have together formed a property development company in Bangalore. Shriram has an insurance broking company in Thailand, in which Ceylinco is a partner.

In Bangladesh, both Shriram and Ceylinco will invest in an existing non-life insurance company. In due course of time, the two groups will form broking companies in West Asia. In Madagascar, Ceylinco will shortly form an insurance company, in which Shriram will take a 30 per cent stake.

Armour Consultants is one of the larger insurance broking firms in the country. In the current year, the company has brokered deals and got various insurance companies a little over Rs 120 crore of premium income.

More Stories on : Mergers & Acquisitions | Financial Services

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