Journalism of Courage
This is an archive article published on March 2, 2019
Carlyle Group buys 9% stake in SBI Life
While BNP Paribas Cardif, a subsidiary of the France-based BNP Paribas group, sold 9.2 crore shares or 9.23 per cent stake in SBI Life on the BSE, 9 per cent stake was acquired by CA Emerald Investments, an affiliate of the Carlyle Group, according to a statement.
The deal valued SBI Life at a discount of 10 per cent to its Thursday closing price of Rs 580.50.
Global investment firm Carlyle Group has acquired a 9 per cent stake in SBI Life Insurance Company, a private life insurance firm in India, for around Rs 4,600 crore. While BNP Paribas Cardif, a subsidiary of the France-based BNP Paribas group, sold 9.2 crore shares or 9.23 per cent stake in SBI Life on the BSE, 9 per cent stake was acquired by CA Emerald Investments, an affiliate of the Carlyle Group, according to a statement.
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 focused on buyout and strategic investments across a range of sectors in Asia Pacific.
Following this transaction, BNP Paribas Cardif and CA Emerald Investments now own 12.8 per cent and 9 per cent of the company, respectively, while SBI remains the majority shareholder with a 62.1 per cent stake in the company.
The deal valued SBI Life at a discount of 10 per cent to its Thursday closing price of Rs 580.50. Dinesh Kumar Khara, managing director, Global Banking & Subsidiaries, SBI, said, “we are pleased with the tremendous strides made by SBI Life in establishing its position in the life insurance industry and appreciate the support given by BNP Paribas Cardif in this journey.
We are also thrilled to welcome Carlyle, with whom we have an existing relationship through SBI Card, and look forward to its support to SBI Life in bolstering its franchise in the country.”
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