HCL Tech, Great American Insurance Company mutually terminate JV
HCL Technologies has terminated its joint venture with Great American Insurance Company to form an Indian entity that was to provide technological support to the insurance firm and its units.
HCL and GAIC had entered an agreement in 2011, which was terminated “on mutual understanding to reduce financial/operational overheads,” the IT services provider said in a filing to the stock exchange on Thursday.
In accordance with the termination agreement, GAIC will sell its 8 percent shares in HCL Eagle.
“The price, which is the face value of the GAIC shares, is subject to the approval of the Reserve Bank of India,” HCL said.
The termination of the joint venture will not affect a master services agreement between the two companies, that was signed in February 2017 for apps, infra, and BPO services for the next four years, HCL added.