Fair trade regulator CCI has given its nod to private equity giant Warburg Pincus-associated Carmel Point Investment's acquisition of 26 per cent stake in IndiaFirst Life Insurance Company from financial services firm Legal & General.
The deal, which as per sources is valued at around Rs 710 crore, would see the United Kingdom-based Legal and General exiting the insurance business in India by selling its entire stake in IndiaFirst Life Insurance Company.
"@CCI_India approves acquisition of 26% stake by Carmel Point Investment from Legal & General Middle East, in India First Life Insurance Co," the regulator said in a tweet dated July 19.
According to the notice submitted to the Competition Commission of India (CCI), the proposed transaction involves an acquisition of fully paid up equity shares, constituting 26 per cent of the total share capital of IndiaFirst Life Insurance Company, on a fully diluted basis by the Warburg Pincus-associated company from Legal & General Middle East.
The acquisition, through an Indian special purpose vehicle, would be by way of a share purchase agreement dated June 1, 2018.
Carmel Point Investment is an investment holding company incorporated under the laws of Mauritius and its shareholders are certain private equity funds managed by Warburg Pincus LLC.
Launched in 2010, IndiaFirst Life Insurance Company started as a joint venture between Bank of Baroda, Andhra Bank and Legal & General.
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