Mumbai: State Bank of India has agreed to sell a 3.9 per cent stake in its life insurance arm to affiliates of KKR and Temasek for Rs 1,794 crore ($266 million), the country's biggest lender said on Friday.
The affiliates of KKR and Temasek will pick up 1.95 per cent each in SBI Life, valuing the insurer at Rs 46,000 crore, the lender said in a statement, adding the deal was subject to regulatory approvals.
SBI Life will consider an initial public offering of shares during the next financial year beginning April 2017 depending on market conditions, chief executive Arijit Basu told Reuters.
State Bank of India currently owns 74 per cent of the life insurance business, while BNP Paribas Cardif owns the remainder.
After the sale to KKR and Temasek, SBI's stake in the insurer will fall to 70.1 per cent.
BNP Paribas Cardif continues to evaluate an offer from State Bank of India to pick up a further 10 per cent stake in SBI Life, Basu said.
Kotak Mahindra Capital and SBI Capital Markets were the advisers on the deal with KKR and Temasek.
($1 = Rs 67.4429)
© Thomson Reuters 2016