Prudential agreed on May 17 to acquire a 75% stake in Bharti Life Insurance Company for an initial cash consideration of 35 billion rupees (about US$389 million or S$467.6 million) [1]. An additional payment of up to 7 billion rupees (US$78 million) may be payable upon completion of the deal [1, 2].
Following the transaction, Bharti Enterprises' shareholding in Bharti Life Insurance will reduce from 85% to 25%, while 360 ONE Asset Management will fully exit its 15% holding [1, 2]. Prudential currently holds a 22% minority stake in ICICI Prudential Life Insurance and a 35% stake in ICICI Prudential Asset Management [1]. Regulatory approvals are expected to require Prudential to reduce its stake in ICICI Prudential Life Insurance to under 10% [1, 2].
Prudential stated that the acquisition does not change its commitment to return US$7 billion to shareholders between 2024 and 2027 [1]. The company also said the deal provides a strong platform to access India's large uninsured middle-class market [1, 2].
Sunil Bharti Mittal, chairman of Bharti Enterprises, said the agreement "opens new opportunities for Bharti Life’s employees and further reinforces the strategic relationship between India and the United Kingdom" [1].
The deal was first announced on May 17, with confirmation from Oriental Daily on May 18 reporting similar terms and valuation in USD and Malaysian ringgit [1, 2].
Prudential and Bharti Life Insurance are now working through regulatory approvals and closing conditions to complete the transaction.
