New Delhi: ICICI Lombard General Insurance has confirmed the acquisition of Bharti Enterprises-promoted Bharti AXA General Insurance. This will be a full share swap deal. Bharti Enterprises currently holds a 51 percent stake in Bharti AXA General Insurance. The remaining 49 percent is held by French insurance company AXA. ICICI Bank-promoted general insurance company said in a communication sent to the stock exchanges on Friday night that in the meeting of the board of directors of ICICI Lombard General Insurance on August 21, Bharti AXA General Insurance (dissolved company) and the first company and their respective shareholders and lenders The middle transaction ‘arrangement’ was approved.
After the split, both Bharti Enterprises and AXA will exit the general insurance business and Bharti AXA General Insurance will cease to function. ICICI Lombard and Bharti AXA said in a joint statement that under the deal, shareholders of Bharti AXA will get two shares of ICICI Lombard for every 115 shares of the company. The share exchange ratio has been recommended by independent valuers. The board of both the companies has approved it. After the deal, the company will have a market share of 8.7 percent based on financial calculations, the statement said. The company has not informed the value of the deal.
