Indian funds investment in insurance
The Competition Commission of India (CCI) has approved on 18 June 2021 acquisition in Magma HDI General Insurance Company Limited by India Advantage Fund S4 I (IAF S4 I) and Dynamic India Fund S4 US I (DIF) through a special purpose vehicle and by NHPEA Trisul Holding B.V (NTH).
The following Proposed Combination involve the approved acquisition:
an effective combined interest of less than 25% (on a fully diluted basis) of the share capital of Magma HDI by IAF S4 I and DIF, acting through a special purpose vehicle (SPV-I) (IAF/DIF Transaction); and
an effective combined interest of less than 10% (on a fully diluted basis) of the share capital of Magma HDI by NTH (NTH Transaction).
The IAF/DIF Transaction and the NTH Transaction are collectively referred to as the ‘Proposed Combination’.
IAF S4 I and DIF, acting through special purpose vehicle (SPV-1/Acquirer-1): SPV-I is a private limited company incorporated under the Indian Companies Act, 2013, in accordance with the IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines, 2017, for the purpose of investing in the share capital of the Target.
NTH/Acquirer-2: NTH is an investment holding company which ultimately belongs to a fund managed or controlled by an affiliate of Morgan Stanley, a global financial services firm that maintains market positions in each of its business segments – Institutional Securities, Wealth Management and Investment Management.
Magma HDI is engaged in the non-life insurance business in India only. It offers products across various categories including Motor, Health, Personal Accident, Home, Fire, etc. in general insurance sphere. #investment #banking #acquisition #finance #fintech /fiinews.com
