HYDERABAD: The State Bank of India (SBI) on Thursday said its joint venture partner Insurance Australia Group (IAG) will sell its entire 26 per cent stake in SBI General Insurance to two private equity investors.
While SBI didn’t disclose the sale value, IAG valued the deal at about 640 million Australian dollars or Rs 3,072 crore.
Napean Opportunities LLP, an affiliate of Premji Invest, will pick up 16.01 per cent stake, and WP Honey Wheat Investment Ltd, part of Warburg Pincus Group will acquire the remaining 9.99 per cent stake.
“IAG has entered into definitive agreements to sell the whole of its 26 per cent interest in SBI General via two transactions,” SBI said in a statement. The transactions are subject to regulatory processes and approvals.
SBI General, valued at over Rs 12,000 crore, is a joint venture between SBI, and Insurance Australia Group. Upon completion of the transaction, SBI will continue to hold its 70 per cent stake, followed by Napean at 16.01 per cent, WP Honey (9.99 per cent), existing investors PI Opportunities Fund-1 (2.35 per cent) and Axis New Opportunities AIF-1 will hold 1.65 per cent of the share capital of SBI General Insurance.
“IAG has enjoyed a strong and successful relationship with SBI since establishing SBI General joint venture in 2009. With our sharpened focus on core territories of Australia and New Zealand, now is the right time to IAG to exit its investment in SBI General,” said Peter Harmer, MD and CEO, IAG.