Bharti AXA-SBI Life sale talks collapse, PEs may throw in hat
The Indian government is monitoring imports of laptops, tablets, and servers, focusing on 27 companies under the Production linked incentive (PLI) scheme 2.0 for IT hardware. The government is preparing to replace the current import management system with an import authorisation mechanism to make the country a global manufacturing hub.
Telecom major 's talks with to sell its life is said to have collapsed due to disagreements over , delaying the 's planned exit from the but simultaneously opening a window for to buy the firm, said people familiar with the matter.Life, the life insurer now wholly owned by the Bharti Group of the Mittals, has been available for sale as the family seeks to focus on its core and exit non-core revenue streams, said those people who did not want to be identified.
"The negotiations fell through due to Bharti Group's higher asking price, which SBI Life was reluctant to meet given the declining business of Bharti AXA," said a source.
ET BureauSpokespersons at both did not respond to requests for comment until the publication of this report.
In 2006, Bharti and France's formed two joint ventures for insurance businesses - one for general insurance and the other to cover lives. The partners decided to exit and sold their general insurance venture to . Subsequently, in October 2023, AXA sold its holding in the life venture to the Bharti Group, making the Indian conglomerate the sole owner.
Bharti Life has struggled financially for many years, with only a brief period of profitability. The insurer reported a 23% decline in premium income to ₹780 crore in FY24, compared with ₹1,016 crore in FY23. This decline occurred while the private sector reported a 12% growth and overall industry growth was at 2%. The company's market share was 0.21% in FY24.
Bharti AXA Life, which is poised to change its name, is now seeking private equity investment, as the promoter is no longer interested in the finance business.
"The company will rebrand, dropping the ," the source said. "The company has been looking to complete the exit before the rebranding, which could happen in the next six months."
In October 2023, Bharti Group said it would buy the remaining 49% of Bharti AXA Life Insurance Co. from AXA India Holdings.
Bharti AXA Life Insurance had an investment book of ₹12,009 crore as of March 2023 and reported a solvency ratio of 1.63 times, above the regulatory requirement of 1.5 times.
Source: Stocks-Markets-Economic Times
