ICICI Bank Ltd. reclassified Prudential Corp.Holdings Ltd. to the position of 'investor' from its previous designation as 'promoter' for its company ICICI Prudential Life Insurance Co. according to an exchange filing from the bank on Sunday.
This implies that the UK-based firm will now abstain from voting on any matters of the company requiring special resolution, in cases where such matters do not adversely impact any right or interest of the firm in the company.
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Prudential will further arrange for the resignation of its nominee director on the board of the company with effect from the date on which the company approves the company's reclassification application.
The firm will not be nominating a director on the board of the company as it is no longer a promoter entity.
ICICI Bank will also vote in favour of the appointment or replacement of the director to be nominated by Prudential on the board of the company.
This will be subject to Prudential holding 10% shareholding in the company while not holding promoter status or more than 10% shareholding in other life insurance firms in India.
This development comes after ICIC Bank commenced the proceedings to acquire a majority of shareholding in ICICI Prudential Life Insurance after closing a deal with Bharti Life Insurance.
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As per the deal figures, Prudential Plc will acquire three-fourth stake in the India-headquartered Bharti Life Insurance, according to a release issued on May 17. Prudential "has agreed to buy 75% stake", Bharti Enterprises said, in the statement issued on the acquisition deal related to its insurance arm.
The initial transaction is valued at Rs 3,500 crore, with a potential additional payout of Rs 700 crore, Prudential said in a separate release. The deal marks an entry of Prudential as controlling shareholder in Bharti Life Insurance. The transaction, however, is subject to regulatory approvals and other customary conditions. Through this acquisition, Prudential is expected to leverage Bharti Life platform to expand life and health insurance offerings in India amid rising demand and digital adoption.
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