Insurance Australia Group Ltd. will sell its 26 percent stake in SBI General Insurance to Napean Opportunities LLP and WP Honey Wheat Investment Ltd., State Bank of India said Thursday, without disclosing the financial details of the deal.
At present, the country's largest lender and IAG own 7O percent and 26 percent, respectively, in SBI General Insurance.
"IAG has entered into definitive agreements to sell the whole of its 26 percent interest in SBI General via two transactions," SBI said in a regulatory filing. "The agreements have been reached with Napean Opportunities LLP (an affiliate of Premji lnvest) to acquire a 16.01 percent interest and WP Honey Wheat lnvestment Ltd. (Warburg Pincus Group) to acquire a 9.99 percent interest.”
The transactions are subject to regulatory processes and approvals.
SBI General Insurance, valued at over Rs 12,000 crore recently, is a joint venture of SBI and Insurance Australia Group.
In September, SBI Chairman Rajnish Kumar said the bank has dropped its plan to take its general insurance arm public as there is no need for additional capital now.
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