Fairfax Financial To Sell 12.18% Stake In ICICI Lombard - Quick Facts

(RTTNews) - Canada's Fairfax Financial Holdings Limited (FRFHF, FFH.TO) said that its wholly owned subsidiary, FAL Corporation, has agreed to sell 12.18 percent of the fully diluted shares of ICICI Lombard General Insurance Company Limited to Red Bloom Investment Ltd, a company wholly owned by private equity funds managed by Warburg Pincus LLC; Tamarind Capital Pte. Ltd, a company wholly owned by the Clermont Group; and IIFL Special Opportunities Fund.

Under the deal, Red Bloom Investment will acquire a 9 percent stake from Fairfax, while Tamarind Capital and IIFL Special Opportunities Fund will both buy a 1.59 percent staker each.

The proposed transaction, which values ICICI Lombard at Rs. 20,300 crore, or about $3.1 billion, is expected to close in the third quarter of 2017.

ICICI Lombard is a general insurance company in India with gross written premiums of approximately $1.2 billion for fiscal year 2016. Upon completion of the transaction, the share ownership in ICICI Lombard of ICICI Bank Limited and Fairfax will be approximately 63 percent and 22 percent, respectively.