[ad_1]
IRDAI also authorized ICICI Bank Ltd to reduce its stake in ICICI Lombard to 30 percent from 51.87 percent (according to the insurer’s June filing).
In a regulatory filing late Friday, ICICI Lombard said it had received a letter from IRDAI granting final approval to the proposed project.
“The date set for the plan is April 1, 2020. The split and transfer of general insurance activities, as envisaged in the plan, will come into effect within three days of the date of final approval”, said ICICI Lombard.
The final approval comes just over a year after ICICI Lombard announced its decision to acquire the general insurance business of Bharti Axa General in a share swap.
In August, ICICI Lombard declared that the shareholders of Bharti AXA General will receive two shares of ICICI Lombard for 115 shares of Bharti AXA General which they hold on the date on which the plan of arrangement is approved by the board of directors. from both companies.
Under the terms of the agreement, AXA and Bharti will receive a total of approximately 35.8 million shares of ICICI Lombard at closing, which would represent 521 million euros, at the current market value of the stock price. Closing of ICICI Lombard shares on August 21, AXA, the French insurance group, then said in a press release.
Integration challenges such as employee and customer retention would be a key point to watch out for. In addition, since Bharti Axa General’s expense ratios are higher, it would have a short-term impact on the combined ratio of the merged entity, rating agency ICRA said in May.
After the transaction, the promoter’s stake in ICICI Lombard will be 48.11 percent and the public stake will be 51.89 percent. Bharti and AXA will both be public shareholders, ICICI Lombard previously said.
In a communication to colleagues last year, CEO and CEO of Bharti AXA General, Sanjeev Srinivasan, said that once regulatory approvals are obtained, an interim committee with representatives from both companies will be set up for the business success and transition.
Until regulatory approvals are obtained, the two companies – ICICI Lombard and Bharti AXA General – will operate independently.
[ad_2]
