Prime Highlights
- CCI has cleared General Atlantic’s plan to increase its holding in Acko Technology & Services beyond 25%.
- General Atlantic Singapore ACK will acquire the additional shares through Acko Tech’s rights issue.
Key Facts
- Acko Tech owns Acko General Insurance, Acko Life Insurance and Assurelink.
- General Atlantic invests in companies across technology, healthcare, infrastructure, life sciences and financial services.
Background
The Competition Commission of India (CCI) has accepted General Atlantic’s plan to increase its investment in Acko Technology & Services Pvt Ltd.
The US-based investment firm will buy more shares in Acko Tech through its affiliate, General Atlantic Singapore ACK Pte Ltd. The transaction will increase the affiliate’s ownership to more than 25% of Acko Tech on a fully diluted basis.
The additional shares will be issued as part of Acko Tech’s rights issue. CCI approved the transaction in August after reviewing the proposed increase in General Atlantic’s stake.
Technology, healthcare, life sciences, infrastructure, and financial services are among the industries in which General Atlantic makes investments. The firm has been an investor in Acko, an Indian insurance technology company.
Acko General Insurance, Acko Life Insurance, and Assurelink are the three fully owned companies of Acko Technology & Services.
Acko General Insurance provides non-life insurance products, while Acko Life Insurance offers life insurance. Both companies operate with the required insurance licences. Assurelink is seeking a corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI). The licence will allow it to distribute insurance policies in the country.
The CCI examines mergers, acquisitions and other major transactions that meet certain financial thresholds. Its role is to prevent those deals from reducing competition or creating unfair market conditions.
General Atlantic can increase its ownership of Acko Tech through the most recent rights issue. The move will give the investment firm a larger interest in the company as Acko continues to build its presence across India’s insurance market.