Friday, 21 August 2020

ICICI Lombard will acquire Bharti Aksa


ICICI Lombard General Insurance Company Limited on Saturday said it has entered into a binding agreement for the acquisition of Bharti AXA General Insurance Company Limited.

Under this, it will acquire the entire shares of Bharti Aksa General Insurance. However, the two companies did not provide details of the transaction amount.

The deal is currently in need of approval from the Insurance Regulatory and Development Authority of India (IRDA), Competition Commission of India (CCI), stock exchanges, Securities and Exchange Board of India (SEBI), shareholders, and lenders of both companies involved in the deal.

Bharti Enterprises holds 51 percent stake in Bharti AXA General Insurance and 49 percent stake in French insurance company Aqsa. Both Bharti Enterprises and Aksa will exit the non-life insurance business after the deal. Both companies in a joint statement, the share swap scheme was introduced for shareholders after the valuation of the two companies by independent third parties.

The scheme was accepted by the board of directors of both companies. Under this, Bharti Aksa shareholders will be given two shares of ICICI Lombard in exchange for every 115 shares. Bharti AXA General Insurance will cease to exist after the acquisition deal. Bhargava Dasgupta, MD, and CEO of ICICI Lombard General Insurance said that this alliance would be beneficial for our shareholders.

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