The Bharti Group has many times in the past mulled selling its stake in Bharti AXA Insurance, though only now the Group believes it is the right time as growth in this sector is picking up, say sources with direct knowledge of the plan.
In another major development for the insurance space, CNBC-TV18 learns that Bharti Group is in talks with prospective buyers to exit its insurance venture. Bharti AXA Insurance is a joint venture (JV) between Bharti Group and AXA Group. AXA had increased its stake to 49 percent in Bharti AXA in 2015. The Bharti Group has many times in the past mulled selling its stake in the insurance business, though the group believes only now is the right time as growth in this sector is picking up and so are merger and acquisition deals, say sources with direct knowledge of the development.
The deal which could be a cash booster for Bharti AXA’s life insurance valuations are pegged to be around Rs 3000-3500 crore, which will help Bharti Group to monetise its insurance business and use deal proceeds to build war chest for its telecom venture Bharti Airtel. The group further expects around Rs 2,000 crore valuation for its non-life insurance business. Bharti is in talks with private equity firms like Blackstone, Advent, Actis, Warburg Pincus and for selling stake in its insurance JV. Bharti Group, however, denies these rumors, saying these are completely speculative and baseless and that it remains committed to its insurance business and partnership with AXA.
Bharti Group in talks to exit insurance business
