Fairfax sells 12.18% stake in ICICI Lombard for Rs 2,500 crore

Fairfax, which owns Lombard, sold its 12.18% stake in its Indian joint venture (JV), ICICI Lombard, to a consortium of three private equity investors led by Warburg Pincus on Saturday.

The deal is valued at around Rs 2,500 crore, sources said.

For the Fairfax deal, the company has been valued at Rs 20,300 crore.

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ICICI Lombard's valuation was at Rs 17,000 crore in October 2015 when Fairfax had increased its stake in the company by 9%.

ICICI Lombard General said in a statement that in its board meeting on Saturday it has approved the proposed sale of around 12.18% shareholding in the company by Fairfax to Red Bloom Investment (9%), a company wholly owned by private equity funds managed by Warburg Pincus, Tamarind Capital (1.59%), a company wholly-owned by the Clermont Group and IIFL Special Opportunities Fund (1.59%), fund managed by IIFL Asset Management.

Post completion of the transaction, the share ownership in the Company of ICICI Bank and Fairfax will be around 63.31% and 22.13% respectively.

The transaction, as per company statement, is subject to governmental and regulatory approvals.