Prudential has struck a deal to purchase a 75% holding in Bharti Life Insurance Company from Bharti Life Ventures and 360 ONE Asset Management.
The agreed upfront payment is Rs35bn ($363.5m), to be paid in cash at completion
The company said the purchase will be financed through existing resources. The agreement also allows for additional consideration of up to Rs7bn, depending on whether certain conditions are met. The statement came after earlier reports about the proposed sale.
The deal still requires regulatory clearance and the fulfilment of other conditions before it can close. Under the arrangement, Bharti Life is also expected to examine distribution agreements with Bharti Airtel and 360 ONE. Bharti Enterprises founder and chairman Sunil Bharti Mittal said: “Prudential’s experience and global scale, combined with Bharti’s strong track record, create a formidable alliance to tap into the immense potential of India’s life insurance sector. “This partnership opens new opportunities for Bharti Life’s employees and further reinforces the strategic relationship between India and the United Kingdom.” Once the transaction is completed, Prudential’s India operations will include a majority stake in Bharti Life Insurance Company and Prudential HCL Health Insurance, as well as minority interests in two listed companies: 35% of ICICI Prudential Asset Management Company and 22% in the ICICI Prudential Life Insurance Company.