ICICI Bank, India’s biggest private sector bank, has agreed to sell a 6 per cent stake in ICICI Prudential Life Insurance Company Ltd in two separate deals to billionaire Azim Premji and Singapore state investor Temasek.
The stale sale will fetch around Rs 1,950 crore to ICICI Bank as the proposed transaction values the life insurance company at Rs 32,500 crore. This reflects the “substantial value created by the business since its inception”, the bank said.
Post the transaction, ICICI Bank will hold approximately 68 per cent share of the company. Prudential Plc, ICICI Bank’s joint venture partner, will maintain its current share of approximately 26 per cent. Significantly, the foreign partner has not opted to increase the stake though the government has allowed foreign direct investment up to 49 per cent in insurance ventures.
Out of 6 per cent sold by ICICI Bank, four per cent was picked up by Premji Invest and its affiliates while two per cent went to Compassvale Investments Pte Ltd, an indirectly wholly-owned subsidiary of the Singapore-based investment company, Temasek.
PremjiInvest, promoted by Wipro chairman Azim Premji, is a family office specialising in private equity and venture capital investments. The firm seeks to invest in technology companies.
The bank recently announced that it was selling 9 per cent stake in its general insurance arm, ICICI Lombard, to Fairfax Financial Holdings, promoted by Canada-based NRI Prem Watsa. The sale will bring down the bank’s stake in the insurance venture to 64 per cent and bring in Rs 1,550 crore.