Fairfax Financial Holdings (Fairfax) will sell 12.18 percent shareholding in ICICI Lombard General Insurance to a clutch of investors including Red Bloom Investment Ltd, a company wholly owned by private equity funds managed by Warburg Pincus LLC.
While Red Bloom plans to pick up 9 per cent stake in ICICI Lombard, Tamarind Capital Pte Ltd, a company owned by the Clermont Group would pick up 1.59 percent stake in the general insurer. IIFL Special Opportunities Fund would pick up 1.59 percent stake in ICICI Lombard.
These transactions are proposed to be done at a company (ICICI Lombard) valuation of Rs 20,300 crore. The Board of Directors of ICICI Lombard General Insurance on Saturday took note of the proposed sale of 12.18 percent shareholding in ICICI Lombard by Fairfax.
The transaction is subject to governmental and regulatory approvals. Upon completion of the transaction, the share ownership in ICICI Lombard of ICICI Bank and Fairfax will be about 63.31 percent and 22.13 percent respectively.