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ICICI Prudential Life shares fall 9 percent as Prudential Plc agrees to buy 75 percent of Bharti Life for Rs 3500 crore, plans to cut ICICI Prudential stake below 10 percent
ICICI Prudential Shares Fall 9%
Shares of ICICI Prudential Life Insurance Company fell 9 per cent on Monday, May 18, to Rs 488.60 per share after Prudential Plc, which currently is a promoter entity of ICICI Prudential, is acquiring 75 per cent stake in Bharti Life Insurance for Rs 3,500 crore, with 700 being additional paid upon the fulfillment of conditions.
The transaction was announced on Sunday by Bharti Enterprises. Under the agreement, Prudential will acquire the controlling stake from Bharti Life Ventures Pvt Ltd and funds managed by 360 ONE Asset Management. The acquisition remains subject to regulatory approvals and customary closing conditions.
Announcing the transaction, Sunil Bharti Mittal said the partnership would help accelerate Bharti Life’s growth plans.
“We are delighted to welcome Prudential Plc as the controlling shareholder of Bharti Life, further accelerating its growth trajectory,” Mittal said, adding that Prudential’s global scale and Bharti’s domestic market strength would create a strong platform for future expansion.
Prudential also highlighted India’s long-term structural growth potential, citing strong demand for protection and savings products, particularly in non-metro markets where insurance penetration remains low.
Prudential PLC will be required to sell its stake in ICICI Prudential above 10 per cent. It currently holds 21.91 per cent stake. Prudential Plc said that they will seek an appropriate timeframe from regulators to divest that 12% stake.
Regulatory approvals for the transaction are expected to require Prudential to reduce its shareholding in ICICIPru Life to under 10%. Prudential is engaging with the relevant regulatory authorities on this process and will seek an appropriate time frame for the divestment that may be required, in the interests of its shareholders.
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