SBI on Monday said Australia's IAG has sold its entire 26 per cent stake in the lender's general insurance joint venture SBI General Insurance Co Ltd for USD 310 million (about Rs 2,325 crore). The stake has been sold to Premji Invest and Warburg Pincus group.
"IAG (Insurance Australia General) is pleased to advise it has completed the sale of its 26 per cent interest in SBI General in India. The associated transactions were first announced on October 17, 2019," SBI said in a regulatory filing, referring to IAG's disclosure on Australian Securities Exchange about the sale.
As a result, IAG will book a net profit on the sale of its interest in SBI General of approximately USD 310 million in the second half of FY20, as per IAG's filing to the Australian exchange.
"The completed sale of the interest in SBI General has increased IAG's regulatory capital position by nearly USD 450 million," it added.
In October last year, the public sector lender SBI had informed that its joint venture partner IAG will sell entire 26 per cent stake in its subsidiary SBI General Insurance to Napean Opportunities and WP Honey Wheat Investment Ltd for an undisclosed amount.
SBI owns 70 per cent stake in SBI General.
"The agreements have been reached with Napean Opportunities LLP (an affiliate of Premji invest) to acquire a 16.01 per cent interest and WP Honey Wheat Investment Ltd (Warburg Pincus Group) to acquire a 9.99 per cent interest," SBI said on October 19, 2019.
SBI General, valued at over Rs 12,000 crore recently, was a joint venture between SBI and Insurance Australia Group.