FAL Corporation – a subsidiary of Fairfax Financial Holdings – has announced plans to sell 12.8% of ICICI Lombard General Insurance Company’s (“ICICI Lombard”) fully diluted shares to Red Bloom Investment (9.00%).
Under the deal, ICICI Lombard – a leading general insurance company in India with gross written premiums of approximately $1.2 billion – is valued at Rs. 20,300 crore (approximately US$3.1 billion).
The acquirer, Red Bloom Investment, is owned by private equity funds and managed by Warburg Pincus LLC, Tamarind Capital Pte. (1.59%), which is in turn owned by the Clermont Group and IIFL Special Opportunities Fund (1.59%).
The proposed transaction is expected to close in the third-quarter of 2017 and remains subject to governmental and regulatory approvals.
When the transaction is finalised, ICICI Lombard’s joint ownership of ICICI Bank Limited and Fairfax will be split at about 63% and 22%, respectively.
