Carlyle Group acquires 9% stake in SBI Life Insurance

Our Bureau Mumbai | Updated on March 01, 2019 Published on March 01, 2019

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Global investment firm Carlyle Group, on Friday, announced that it has acquired a 9 per cent stake in SBI Life Insurance.


The firm, which has $216 billion of assets under management across 343 investment vehicles, did not disclose the cost of the acquisition. However, at current market prices, the transaction is estimated at ₹5,445 crore.

Following this transaction, BNP Paribas Cardif and CA Emerald Investments now own 12.8 per cent and 9 per cent, respectively, of the private sector life insurer, while SBI remains the majority shareholder with 62.1 per cent stake.

“Carlyle’s equity for this investment came from CA Emerald Investments, an affiliated entity of Carlyle Asia Partners V, Carlyle’s flagship $6.55-billion fund focussed on buyout and strategic investments across a range of sectors in Asia Pacific,” the firm said in a statement.

“Our company has also been informed by BNP Paribas Cardif that it has successfully sold 92,252,908 equity shares of our company, cumulatively representing 9.2 per cent of the total issued and paid-up equity share capital of our company as on March 1, 2019,” SBI Life Insurance said in a regulatory filing.

French insurer BNP Paribas Cardif earlier held 22 per cent stake in the life insurer, and it is reported to have been keen to cut its stake to meet regulatory norms for a public float. “Carlyle’s trust in the company will further strengthen our resolve to enhance our leadership position in India’s life insurance industry through a single-minded focus on quality customer experience,” said Sanjeev Nautiyal, Managing Director and CEO, SBI Life.

Noting that SBI is the most-trusted brand in the financial services sector, Sunil Kaul, Managing Director of the Carlyle Asia Buyout Advisory Team, said: “The life insurance industry in India has strong growth potential, thanks to favourable demographics and an increasing focus on financial savings.”

SBI Life, which is the country’s largest private sector insurer, had launched an IPO in September 2017. In India, Carlyle’s recent investments in financial services include PNB Housing Finance and SBI Card.

Shares rise

Shares of SBI Life Insurance bounced back from early losses on Friday, and closed with a gain of 5.5 per cent after the announcement of the acquisition.

After falling a sharp 12.14 per cent to ₹510 during the day on the BSE, shares of the company bounced back to close at ₹612.25, a gain of 5.47 per cent.

Published on March 01, 2019
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