State Bank of India divested 3.9% stake in SBI Life at a price of Rs 460 per share to Singapore state investment firm Temasek and global private equity giant KKR, ahead of its plans to go public within a couple of years. The transaction valued SBI Life at Rs 46,000 crore.
SBI sold of 3.9 Cr shares of Rs.10 each, equalling a 3.9% stake in SBI Life for Rs.1,794 Cr.
Report Said, KKR and Temasek affiliates would each purchase 1.95 Cr share from the bank.
In October, SBI had informed the exchanges it was planning to divest up to 5% to interested parties and that it was working towards taking SBI Life public over the next 18–24 months. SBI had also offered to shed 10% stake to its French JV Partner BNP Group, at a right price.
SBI Life is a joint venture between the SBI and French multinational bank BNP Paribas Cardif, which owns 26% stake.
Post-transaction, SBI’s stake in the life insurance arm will come down to 70.1% from the current 74%, while BNP Paribas Cardif will continue to hold 26%.
Following the announcement, the stock rose 1.29% to hit a high of Rs 269.45 on BSE. Foreign brokerage BofA-ML has maintained a buy rating on the stock with a revised target of Rs 320 from Rs 310 earlier.
Comments
Post a Comment