New Delhi: Manipal Group, which runs a chain of multi-speciality hospitals, is buying a strategic stake in Cigna TTK Health Insurance Company from TTK Group for an undisclosed sum.

According to the deal, Manipal Group will hold a 16.04 per cent stake, while TTK Group will own the balance 34.96 per cent in the health insurance venture. Consequently, Manipal Group and TTK Group will jointly hold 51 per cent stake in the company.

In September last year, Cigna TTK had filed an application with the insurance regulator for a change in partnership from TTK to Manipal Group. It had proposed for Manipal Group to buy out 51 per cent stake of TTK Group.

However, the companies had to revise the proposal after the insurance regulator asked them to rework the shareholding structure.

While announcing the deal on Monday, Cigna TTK Health Insurance Company (Cigna TTK) said it has now received necessary regulatory approvals from the Insurance Regulatory and Development Authority of India (IRDAI) to partner Manipal Group.

"According to the new structure, Cigna Corporation will continue to hold its 49 per cent stake in the Indian health insurance venture, while Manipal Group and TTK Group will jointly hold 51 per cent stake in the joint venture," Cigna TTK Health Insurance Company said in a statement. PTI