<p> State Bank of India (SBI) has approved sale of 3.9 crore shares, equalling a 3.9% stake in its subsidiary SBI Life Insurance Company (SBI Life) for Rs 1,794 crore ($264 million). <br /><br /></p>.<p>An investment vehicle affiliated with KKR-managed funds and an affiliate of Temasek, the Singapore-based investment company, will each purchase 1.95 crore shares from SBI. The proposed transaction values SBI Life at Rs 46,000 crore at Rs 460 per share, SBI said.<br /><br /> Upon completion of the transaction, SBI will hold 70.1% stake in SBI Life while its joint venture partner, BNP Paribas Cardif, will continue to hold 26.0%. Kotak Mahindra Capital Company and SBI Capital Markets acted as the exclusive financial advisors for the transaction, SBI added.<br /><br />SBI Life is a joint venture between State Bank of India and BNP Paribas Cardif. BNP Paribas is a French multinational bank and financial services company with global headquarters in Paris. SBI Life is the fastest growing large private life insurer, and the largest private life insurer by new business premium and number of policies sold. The company earned Rs 7,107 crore and Rs 4,640 crore of new business premium during FY2016 and H1FY2017, respectively. The company had 22% private sector market share in terms of new business premium.<br /><br />“The partnership with KKR and Temasek is a recognition of the efforts of SBI Life’s commitment to create a high quality institution which is a leader in the private Indian life insurance space. This transaction values SBI Life at Rs 46,000 crore, reflecting significant value creation since its inception in 2001,” SBI chairman Arundhati Bhattacharya said.<br /> <br />“We see exciting growth opportunities for Indian insurers stemming from increasing savings, a rising middle class and rapid urbanisation. We look forward to supporting SBI Life’s long-term growth alongside these high-caliber partners, and are excited to enhance financial access for citizens across the country and promote the development of a more inclusive financial services industry,” KKR India member and chief executive officer Sanjay Nayar said.<br /><br /><br /></p>
<p> State Bank of India (SBI) has approved sale of 3.9 crore shares, equalling a 3.9% stake in its subsidiary SBI Life Insurance Company (SBI Life) for Rs 1,794 crore ($264 million). <br /><br /></p>.<p>An investment vehicle affiliated with KKR-managed funds and an affiliate of Temasek, the Singapore-based investment company, will each purchase 1.95 crore shares from SBI. The proposed transaction values SBI Life at Rs 46,000 crore at Rs 460 per share, SBI said.<br /><br /> Upon completion of the transaction, SBI will hold 70.1% stake in SBI Life while its joint venture partner, BNP Paribas Cardif, will continue to hold 26.0%. Kotak Mahindra Capital Company and SBI Capital Markets acted as the exclusive financial advisors for the transaction, SBI added.<br /><br />SBI Life is a joint venture between State Bank of India and BNP Paribas Cardif. BNP Paribas is a French multinational bank and financial services company with global headquarters in Paris. SBI Life is the fastest growing large private life insurer, and the largest private life insurer by new business premium and number of policies sold. The company earned Rs 7,107 crore and Rs 4,640 crore of new business premium during FY2016 and H1FY2017, respectively. The company had 22% private sector market share in terms of new business premium.<br /><br />“The partnership with KKR and Temasek is a recognition of the efforts of SBI Life’s commitment to create a high quality institution which is a leader in the private Indian life insurance space. This transaction values SBI Life at Rs 46,000 crore, reflecting significant value creation since its inception in 2001,” SBI chairman Arundhati Bhattacharya said.<br /> <br />“We see exciting growth opportunities for Indian insurers stemming from increasing savings, a rising middle class and rapid urbanisation. We look forward to supporting SBI Life’s long-term growth alongside these high-caliber partners, and are excited to enhance financial access for citizens across the country and promote the development of a more inclusive financial services industry,” KKR India member and chief executive officer Sanjay Nayar said.<br /><br /><br /></p>
