Insurance sector regulator IRDAI has approved the Bharti AXA-ICICI Lombard deal..
New Delhi. Private sector general insurance company ICICI Lombard said on Friday that insurance sector regulator IRDAI has given final approval to the plan to merge the general insurance business of Bharti AXA General Insurance with it. has given. ICICI Lombard gave this information in a regulatory filing.
ICICI Lombard said that in this regard, the company has received a letter of final approval regarding the proposed scheme from IRDAI on September 3, 2021. The effective date for this scheme was kept as April 1, 2020.
ICICI Bank will hold up to 30 per cent stake in
ICICI Lombard ICICI Lombard said the deal would be effective within three days from the date of final approval for demerger and transfer of the general insurance business as stated in the plan. IRDAI has also approved ICICI Bank to bring down its stake in ICICI Lombard to 30 per cent. However, this work will be dependent on compliance with the Insurance Act 1938 and necessary regulations.
ICICI Lombard had last year signed a definitive agreement to acquire Bharti AXA General Insurance, promoted by Bharti Enterprises. This deal is to be done entirely through the transaction of shares. The shareholders of Bharti AXA will get two shares of ICICI Lombard for every 115 shares they hold, as per the share swap formula accepted by the boards of directors of both the companies.
Bharti Enterprises and AXA will go out of non-life insurance business Bharti Enterprises
currently holds 51 per cent stake in Bharti AXA General Insurance while the remaining 49 per cent is with French insurance company AXA. After the separation, Bharti AXA General Insurance Company will cease to be a company and both Bharti Enterprises and AXA will go out of non-life insurance business.
