MUMBAI: The country’s largest lender State Bank of India today sold 3.9% stake in its life insurance venture SBI Life to private equity firms KKR and Temasek. The deal values SBI Life at Rs 46,000 crore.
“KKR and Temasek has bought 3.9% stake in SBI Life Insurance Company,” said two sources.
SBI Life is a joint venture between State Bank of India and BN Paribas Cardiff.
In a filing to Bombay Stock Exchange, SBI said that the executive committee of the central board of the bank at its meeting held on December 09, 2016 has approved divestment 3.9% stake in SBI Life Insurance Company at a price of Rs. 460 per share, subject to all regulatory approvals.
ICICI Prudential Life was valued at Rs 32,500 crore when ICICI Bank sold a 6% stake in ICICI Prudential to Wipro Chairman Azim Premji and the Singapore government’s investment company Temasek in November last year. Today it is valued at Rs 42,291 crore. KKR has stake in Max Financial Services which owns majority stake in Max Life Insurance.
Give away your fancy watches now!Elite Connect XLRIs Leadership & Change Management CertificationXLRI Recommended By Colombia
Consolidation in the insurance industry has begun after legislation enabled foreign insurers to raise stake to 49%. Post change in law, two large insurance companies HDFC Life and Max Life have initiated the process to merged.