ICICI Lombard selects 3 PE funds for 35 per cent stake sale

According to leading business news portal, ICICI Lombard has finalised three private equity funds i.e. Carlyle, Temasek and Warburg Pincus, to obtain 35 per cent stake in the Company, from a list of several shortlisted funds, formulated by four prospective buyers, who had made an offer for the stake, and it could be worth around USD 1 billion.

These selected funds will subject to a round of due diligence before they give a final offer by April end.

India’s biggest private insurance firm, ICICI Lombard is a joint venture between ICICI Bank, India’s second largest bank; and Fairfax Financial Holdings Limited, a diversified financial services company.

Before a year, Fairfax had thought of selling 25 per cent of its 34.6 per cent stake in the JV recognising some regulatory reasons, which could help it to link with another joint venture in the country.

Back in 2015, Fairfax had purchased extra stake of 9 per cent in the JV, worth USD 237 million, which increased its valuation to USD 2.5 billion.

Foreign investors cannot hold more than 10 per cent in an insurance company.