The Competition Commission of India (CCI) has approved the proposed acquisition of 24.9% shareholding in Future Generali India Insurance Company Limited (FGIICL), a general insurance company and 25.18% shareholding in Future Generali India Life Insurance Company Limited (FGILICL) by Central Bank of India, a scheduled commercial bank.
- This acquisition was approved following the bid/resolution plan submitted by the Central Bank of India under the Insolvency and Bankruptcy Board of India (IBBI) (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Points to Note:
i.FGILICL is a life insurance company, which provides savings insurance, investment plans like: Unit Linked Insurance Plan (ULIP), term insurance plans, child plans, retirement plans, among others.
ii.In August 2024, Central Bank of India announced that it has emerged as the successful bidder by the Committee of Creditors (CoC) for the sale of category1 assets of debt-ridden Future Enterprises Limited (FEL) in FGIICL and FGILICL.
Bharti Airtel received CCI’s nod to raise stake in Indus Towers to Buy Back of Shares of Indus Towers
The CCI has approved the proposal of Bharti Airtel Limited (Bharti Airtel) to increase its stake in Indus Towers Limited (Indus Towers), passive telecom infrastructure provider, to 50.005% (from previous shareholding of 48.95%) pursuant to buy back of shares by Indus Towers.
- On 14th August 2024, Indus Towers started the buyback process of over 5.67 crore shares at Rs 465 per share, accounting nearly 21.07% of the total number of equity shares in the company’s paid-up share capital, with a maximum expenditure of Rs 2,640 crore (excluding transaction costs).
- The buy back process was completed in accordance with the Securities and Exchange Board of India (SEBI)(Buy-Back of Securities) Regulations, 2018.
CCI Approved Proposed Acquisition of Aavas Financiers Limited by AHPL
The CCI has approved the proposal of Aquilo House Pte. Limited (AHPL) to acquire Aavas Financiers Limited (AFL) (Target), registered with the National Housing Bank (NHB) as a non-deposit taking housing finance company.
- AHPL (Acquirer) is a newly incorporated body, wholly and indirectly, held by the relevant CVC funds, which are certain investment funds or vehicles managed and/ or advised by members of the CVC Network.
Note:
i.CVC Network or CVC Group: It is an international alternative investment manager focused on private equity, credit, secondaries, and infrastructure, comprising of CVC Capital Partners plc. (CVC PLC) and each of its subsidiaries from time to time.
ii.CVC PLC: It is a public limited company with shares listed and added to trading on the Euronext Amsterdam Stock Exchange.
Key Points:
i.Target business activities in India include, a provision of home loans, Micro, Small, and Medium Enterprises (MSME) business loans, loans against property and distribution of life, health, and general insurance products to for target’s customers only.
ii.The proposed transaction includes acquisition of shares and control by the Acquirer in the Target pursuant to: the share sale agreements executed amongst the Acquirer, the Target and certain existing promoters/ promoter group of the Target; and the compulsory open offer in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
About Competition Commission of India(CCI):
It is a statutory body constituted under Competition Act, 2002.
Chairman- Ravneet Kaur
Headquarters- New Delhi, Delhi
Established- 2003
