Prudential To Buy Controlling Stake In Bharti Life Insurance For $365 Million, Expand India Presence

Prudential

(PRU.L), opens new tab on Sunday said it has agreed to acquire a 75% stake in Bharti Life Insurance Company, from Bharti Life Ventures and 360 ONE Asset Management (ONEW.NS), opens new tab, ‌as part of a strategic repositioning of its India operations.

• Prudential said it will acquire a controlling stake in Bharti Life Insurance for ​initial cash consideration of 35 billion rupees ($364.74 million), ​payable on completion. An additional 7 billion rupees is ⁠potentially payable on the fulfillment of certain conditions that ​the Hong Kong and London-listed insurer did not specify.
• Upon completion ​of the deal, Prudential said its Indian operations will consist of majority-owned Bharti Life Insurance and Prudential HCL Health Insurance, and minority shareholdings ​in two listed entities, namely 35% of ICICI Prudential ​Asset Management Company (IICL.NS), opens new tab and 22% in ICICI Prudential Life Insurance Company (ICIR.NS), opens new tab.
• Prudential is ‌required ⁠to reduce its shareholding in ICICIPru Life to under 10% to secure regulatory approval for the deal, the company said, adding that it is engaging with regulatory authorities on ​this process.
• The ​deal is a ⁠strategic move to secure majority ownership of a life insurance business in India, a ​highly attractive market for Prudential, and enables the ​insurer ⁠to work closely with Bharti Enterprises’ other businesses and related entities, the statement added.
• Bharti Life will also look into securing ⁠strategic ​distribution agreements with Bharti Airtel (BRTI.NS), opens new tab and ​360 ONE as part of the deal, the statement said.