ICIC Lombard ICICI Lombard to buy Bharti AXA General Insurance
Mumbai/IBNS: ICICI Lombard General Insurance has said it has entered into a definitive agreement to buy Bharti Enterprises promoted Bharti AXA General Insurance, according to a media report.
According to media reports, ICICI Lombard, owned by ICICI Bank, said in a BSE filing, "The board of ICICI Lombard General Insurance at its meeting held on August 21, 2020, considered and approved a 'scheme of arrangement' amongst Bharti AXA General Insurance (demerged company) and former company and their respective shareholders and creditors."
The deal will create India's third-largest non-life insurance company, with a combined annual premium of Rs 16,447 crore and a market share of nearly 8.7 per cent, said an NDTV report.
Bharti Enterprises has a 51 per cent share while French insurance company AXA has a 49 per cent in Bharti AXA General Insurance.
For every 115 shares of Bharti AXA General Insurance, the shareholders will get two shares of ICICI Lombard held as on the date of approval of the 'scheme of arrangement' by the board of ICICI Lombard and Bharti AXA, said the report.
Post the demerger Bharti AXA General Insurance will no longer exist as a going concern.
"This is a landmark step in the journey of ICICI Lombard and we are confident that this transaction would be value accretive for our shareholders...We would also like to reassure Bharti AXA's policyholders and channel partners of seamless business continuity and maintaining highest standards of customer service," Bhargav Dasgupta, MD & CEO of ICICI Lombard was quoted as saying in the NDTV report.
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