IRDAI gives in principle nod to ICICI Lombard to buy Bharti AXA General

IRDAI has approved in-principle acquisition of General Insurance business of Bharti AXA General Insurance by ICICI Lombard General Insurance, the company said in a statement.

Earlier, Competition Commission of India (CCI), BSE Limited and National Stock Exchange of India Limited approved the proposed acquisition.

“Upon closing of the proposed transaction, the consolidated entity will have a market share of 8.7% on proforma basis in the non-life business,” ICICI Lombard said in a statement. The proposed transaction is expected to result in value creation for all stakeholders through meaningful revenue and operational synergies, it added.

The policyholders should benefit from an enhanced product suite and deeper customer connect touch points, said India’s largest private non-life insurer.

Pursuant to the proposed combination, the entire general insurance business of Bharti AXA would be transferred by way of a demerger to ICICI Lombard in consideration of issuance of shares by ICICI Lombard to Bharti AXA.

Based on the share exchange ratio recommended by independent valuers, shareholders of Bharti AXA will receive two shares of ICICI Lombard for every 115 shares of Bharti AXA. At present, promoter ICICI Bank Ltd holds is 51.89% stake in ICICI Lombard, while the rest is with the public. After the proposed deal, promoter stake will come down to 48.11%.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.