IAG Completes 26% Stake Sale In SBI General Insurance

Money & Banking

Australia’s IAG has exited SBI General Insurance by selling its entire 26 per cent stake in the general insurer. “IAG is pleased to advise it has completed the sale of its 26 per cent interest in SBI General in lndia,” State Bank of India said in a filing on Monday.

The transaction was originally announced in October last year where IAG would sell its stake to Premji Invest and Warburg Pincus Group.

“As a result, IAG will book a net profit on sale of its interest in SBI General of approximately $310 million in the second half of 2019-20,” SBI said, adding that the completed sale of the interest in SBI General has increased IAG’s regulatory capital position by nearly $450 million.

SBI owns 70 per cent stake in SBI General, which is an unlisted firm. SBI’s stake will remain unaffected.

Under the transaction, Napean Opportunities LLP (an affiliate of Premji Invest) will hold 16.01 per cent stake in SBI General Insurance (SBIG), WP Honey Wheat Investment will hold 9.99 per cent interest, PI Opportunities Fund-1 2.35 per cent stake and Axis New Opportunities AIF – I 1.65 per cent of the share capital of the company,vthe companies had said at the time.

IAG was looking to exit SBI General Insurance for some time with its focus on core territories of Australia and New Zealand

Published on March 30, 2020

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