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November 19, 2019

Carlyle Group looking to offload stake in SBI Life Insurance

American investment firm Carlyle Group is planning to divest a 3% stake in India-based SBI Life Insurance Company.

The deal, according to The Economic Times, could fetch as much INR28.2bn ($393.1m) for The Carlyle Group .

Each share will be sold at around INR930 ($12.97) to INR940 (13.11), a 6% to 7% discount over Monday’s closing price of INR1,000 ($13.94) on 18 November,  the report added.

Carlyle Group, through its investment unit CA Emerald Investments , acquired a 9% stake in SBI Life Insurance from BNP Paribas Cardif in a transaction valued at around INR55bn ($776.22m) in March this year.

Last month, private equity firm KKR also sold shares worth about $75m that it held in SBI Life Insurance.

In June, BNP Paribas Cardif revealed its plans to offload up to 25 million shares, representing around 2.5% of SBI Life Insurance in a transaction worth INR16.25bn ($235m).

SBI Life is a joint venture (JV ) between India’s largest bank State Bank of India and BNP Paribas Cardif, a unit of French lender BNP.

As of 30 September 2019, SBI held a nearly 57.6% stake in the JV, while BNP Paribas owned around 5.2% stake.

Investment bank JP Morgan has been hired by Carlyle Group to advise on the block deal.

Founded in 2001, SBI Life Insurance has a unique multi-distribution model encompassing bancassurance, retail agency, institutional alliance, and corporate solutions. It offers a range of life, health, pension, on-line and micro-insurance products.

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