Mumbai:
The Competition Commission of India(CCI) on Monday has approved the acquisition of Bharti AXA General Insurance by ICICI Lombard General Insurance.
On August 21, 2020 ICICI Lombard General Insurance Company had announced the acquisition of Bharti AXA General Insurance via a scheme of demerger.
ICICI Lombard is, in parallel, progressing applications for receipt of approvals from other concerned regulators for the transaction, said the company.
After the completion of of the proposed transaction, the ICICI Lombard will have a market share of 8.7 per cent in the non-life business.
The merger of Bharti Axa General Insurance with ICICI Lombard General Insurance, India's largest non-life company had got formalised in an all-stock deal, valued at €521 million(approximately Rs 4,200 crore).AXA, with 49 per cent of stake and Bharti, with 51 per cent of stake, to combine their non-life operations in India into ICICI Lombard, in exchange of shares
The shareholders of Bharti AXA will receive two shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date as the scheme of arrangement is approved by the board of directors of ICICI Lombard and Bharti AXA.
Under the terms of the agreement, AXA and Bharti will receive a total of 35.8 million shares of ICICI Lombard on closing, which would represent Euro 521 million at current market value, and an implied HY 2020 P/BV4 multiple of more than five times.
The transactionis expected to result in an one-time positive net income of approximately Euro 0.2 billion in AXA Group’s FY 2021 consolidated financial statements,said AXA..
Bharti wil get 1,82,35,659 equity shares whie AXA will receive 1,75,20,535 equity shares. There are no special rights being granted to Bharti or AXA, upon effectiveness of the
Scheme,
in their capacity as shareholders of the ICICI Lombard General Insurance,. both Bharti and AXA , whose combined share holding will over 8 per cent in the ICICI Lombard ,will be categorized as public shareholders of the company..