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Fairfax sells 12% stake in ICICI Lombard to Warburg Pincus for Rs 2,473 cr

Company plans to start a new insurance JV after selling 25% stake in the general insurance firm

Fairfax India

Press Trust of India  |  New Delhi 

Fairfax, ICICI Lombard, Warburg Pincus
File photo of a man walking past a Fairfax Holdings sign directing shareholders to the meeting, at the annual general meeting for shareholders in Toronto in April 9, 2014. (Photo: Reuters)

ICICI Lombard General Insurance on Sunday said its foreign partner Canada-based Fairfax has offloaded part stake of 12.18 per cent to a clutch of investors, including Warburg Pincus, for Rs 2,473 crore.

The board, at its meeting held today (May 28), took note of the proposed sale of approximately 12.18 per cent shareholding in the insurance firm by Fairfax to Red Bloom Investment (9%), a company wholly owned by private equity funds managed by Warburg Pincus LLC.

Besides, others that picked stakes were Tamarind Capital Pte (1.59%), a company wholly owned by the Clermont Group, and IIFL Special Opportunities Fund (1.59%), a fund managed by IIFL Asset Management.

The company, formed in 2001, is a joint venture between ICICI Bank and Prem Watsa-run Fairfax Financial Holdings with a valuation of Rs 20,300 crore.

The stake sale by Fairfax is part of its plan to sell 25 per cent in the general insurance firm and start a new insurance joint venture.

ICICI Securities acted as an advisor.

It is to be noted that last year, Fairfax Financial Holdings made an additional 9 per cent stake acquisition in ICICI Lombard General Insurance Company for an estimated Rs 1,550 crore.

Following the transaction, the holding of Fairfax rose to 35 per cent in ICICI Lombard while that of ICICI Bank came down to 64 per cent.

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First Published: Sun, May 28 2017. 15:29 IST