State Bank of India (SBI), the country's largest lender, on Thursday said its joint venture partner IAG will sell its entire stake in SBI General Insurance to Premji Invest & Warburg Pincus Group.
Australia's Insurance Australia Group (IAG) will sell its 26 per cent stake in SBI General Insurance to Napean Opportunities LLP, an affiliate of Premji lnvest, and WP Honey Wheat lnvestment, owned by Warburg Pincus Group.
"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 filing to the Bombay Stock Exchange.
SBI General Insurance (SBIG), valued at over Rs 12,000 crore recently, is a joint venture between SBl and IAG. The country's largest lender and lnsurance Australia Group currently own 70 per cent and 26 per cent, respectively, in the non-life insurance joint venture.
"The agreements have been reached with Napean Opportunities LLP (an affiliate of Premji lnvest) to acquire a 16.01 per cent interest and WP Honey Wheat lnvestment Ltd (Warburg Pincus Group) to acquire a 9.99 per cent interest," SBI said.
The transactions are subject to regulatory processes and approvals, it added.
Last month, SBI Chairman Rajnish Kumar has said the bank scrapped its plan to take its general insurance arm public as there was no need for additional capital now.
Following the announcement, shares of SBI jumped 3.73 per cent to close higher at Rs 265.45 apiece on the BSE.
Edited by Chitranjan Kumar