IAG sells its stake in SBI General for over ~3K cr
Insurance Australia Group (IAG), the joint venture partner of State Bank of India (SBI) in SBI General Insurance, on Thursday said it will sell its entire stake of 26 per cent in the general insurance company to two private equity investors for over ~3,000 crore.
IAG will sell 16.01 per cent of its 26 per cent stake in SBI General to Napean Opportunities, an affiliate of Premji Invest. The remaining 9.99 per cent will be acquired by WP Honey Wheat Investment of the Warburg Pincus group.
Pushan Mahapatra, managing director and chief executive officer (MD & CEO), SBI General Insurance, said, “We are glad to welcome Premji Invest and Warburg Pincus and look forward to an enriching association to support SBIG’S continued growth and sustainable profitability. We would like to thank IAG for their efforts in successfully propelling SBIG on its growth path.” On the stake sale, IAG MD & CEO Peter Harmer said, “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 of IAG to exit its investment in SBI General.”
IAG values the deal at over 640 million Australian dollars, which when converted to rupees at an exchange rate of ~48/Australian dollar values the deal at ~3,072 crore.
After the deal, SBI will still continue to be the majority shareholder in the general insurance company with 70 per cent stake and Premji Invest along with Warburg Pincus will jointly hold 26 per cent.