ICICI Bank on Friday said it plans to sell additional 9 per cent stake in its general insurance arm for about Rs 1,550 crore to Prem Watsa run Fairfax Financial Holdings of Canada.
Upon completion of the transaction, ICICI Bank will hold about 64 per cent in ICICI Lombard General Insurance Company Ltd, while Fairfax have 35 per cent.
The bank said in a statement that its board has approved the sale of 9 per cent shareholding in ICICI Lombard to its joint venture partner, Fairfax Financial Holdings Limited.
Earlier, foreign partners were only allowed to hold 26 per cent stake in an insurance venture which has now been increased to 49 per cent after the passage of the Insurance Laws (Amendment) Act earlier this year.
The proposed transaction values the company at Rs 17,225 crore, it said.
The transaction reflects the company’s franchise as the leading private sector general insurer in India, the substantial potential for profitable growth of the business and the strong relationship between the joint venture partners, it added.
The transaction is subject to governmental and regulatory approvals.