Asim premji's Premji Invest to buy 6% stakes at ICICI Prudential
Asim premji’s Premji Invest to buy 6% stakes at ICICI Prudential
MUMBAI: ICICI Bank has agreed to sell 6%t stake in its life insurance venture(ICICI Prudential) to an investment company of Azim Premji and an arm of Singapore government-owned Temasek Holdings for Rs 1,950 crore. The deal values the company at Rs 32,500 crore, which makes it the most valuable private sector insurer. The valuation is lower than the originally estimated(Rs 36,000 crore) earlier this year, and less than the Rs 38,000 crore the firm was valued at when it priced stock options for employees last year.
“The board of ICICI Bank has at its meeting Wednesday(18.11.2015) approved, subject to government and regulatory approval, the sale of 6 per cent out of ICICI Bank’s shareholding in ICICI Prudential Life Insurance,” the bank said in a filing with BSE. ICICI would sell 4% stake to Premji Invest and its affiliates, and 2% to Compassvale Investments Pte Ltd, a wholly owned arm of Temasek.
Now, ICICI Bank will hold approximately 68% in the company while Prudential Plc, the joint venture partner, will maintain its stake at 26%. The Foreign partner can raise its stake to 49% as permitted by an amendment to the IRDA Bill passed earlier this year. This is the second investment by Premji Invest in life insurance. In December, it bought 0.95 per cent in HDFC Life from HDFC for Rs 200 crore, valuing the insurer at close to Rs.20000 crores.
This is the second insurance related transaction by ICICI Bank in less than a month, as the lender monetises its investments after poor loans growth. It sold 9% stake in ICICI Lombard General Insurance Company to Toronto-based