Business

Insurance Australia exits SBI General Insurance

Sells stake to Premji Invest, Warburg

Insurance Australia Group (IAG), which has 26% in SBI General Insurance, has decided to exit the venture by selling its stake to Premji Invest and private equity firm Warburg Pincus for $640 million.

According to the agreement, Napean Opportunities LLP, which is a part of Premji Invest, will buy 16.01%, and WP Honey Wheat Investment Ltd., an affiliate of Warburg Pincus, will acquire 9.99%.

“IAG has entered into a definitive agreement to sell the whole of its 26% interest in SBIG via two transactions,” State Bank of India said in a statement.

At present, SBI has 70% stake in the company, while PI Opportunities Fund-1 has 2.35% and Axis New Opportunities AIF–I has 1.65% stake. AIG said in a statement that the deal is valued over $640 million based on current exchange rate.“The transactions, which are subject to regulatory processes and approvals, are expected to be completed during IAG’s financial year ending June 30, 2020,” AIG said.

“With our sharpened focus on our core territories of Australia and New Zealand, now is the right time for IAG to exit its investment in SBIG,” Peter Harmer, Managing Director and Chief Executive Officer, IAG said.

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Printable version | Jul 1, 2020 2:14:16 AM | https://www.thehindu.com/business/insurance-australia-exits-sbi-general-insurance/article29728311.ece

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