ICICI Bank on Thursday said ICICI Lombard General Insurance has ceased to be its subsidiary, as shareholding of the bank has come down to 48 per cent after the merger of Bharti AXA with the insurer.
ICICI Lombard General Insurance Company (ICICI Lombard) had on September 8, 2021, allotted equity shares of the company to the eligible shareholders of Bharti AXA General Insurance Company (Bharti AXA), as per the scheme of arrangement between the two insurers.
The scheme of arrangement between Bharti AXA and ICICI Lombard came into effect on September 8, 2021.
“ICICI Lombard has made the disclosure to the stock exchanges…Accordingly, with the bank’s shareholding reducing from 51.86 per cent to 48.08 per cent, ICICI Lombard has ceased to be a subsidiary of the bank,” the bank said in a regulatory filing.
ICICI Lombard has allotted a total of 35,756,194 equity shares of the company to Bharti AXA shareholders — Bharti General Ventures (18,235,659) and Societe Beaujon (17,520,535).
Last year, ICICI Lombard entered into a definitive agreement to acquire Bharti Enterprises-promoted Bharti AXA General Insurance in an all-stock transaction.
Based on the share exchange ratio recommended by independent valuers and accepted by the boards of the two companies, the shareholders of Bharti AXA received two shares of ICICI Lombard for every 115 shares of Bharti AXA held by them.
Bharti AXA was a joint venture between Bharti Enterprises (51 per cent) and French insurer AXA (49 per cent).
With the merger of Bharti AXA with ICICI Lombard, both the former owners of Bharti AXA have exited the non-life insurance business.
Last week, sectoral regulator Irdai had given its final approval for the demerger of the general insurance business of Bharti AXA General Insurance with ICICI Lombard.
Shares of ICICI Lombard closed 0.58 per cent up at Rs 1,620.90 apiece on BSE.
Source: Business-Standard