A consortium of US private equity firm Carlyle Group and Singapore’s sovereign wealth fund GIC is set to buy a 10% strategic stake in SBI Life Insurance Co from BNP Paribas Cardif, according to Economic Times.
Apart from Carlyle, other private equity firms like KKR, Temasek Holdings are also in talks to buy stake from BNP Paribas Cardif.
SBI Life Insurance, in its filing on BSE on September 24, 2018, mentioned that BNP Paribas Cardif may consider reducing its stake in the company to comply with minimum public shareholding requirement. SBI Life Insurance is a joint venture between State Bank of India and the leading global insurance company BNP Paribas Cardif.
BNP Paribas Cardif holds 22% stake in SBI Life Insurance out of the total promoter holding of 84.1% as on September 30, 2018. In this context, BNP Paribas Cardif has also confirmed that it is yet to make any firm decisions regarding the size, timing or nature of such potential reduction of their holding in the company.
In case of likely reduction in the promoter shareholding, BNP Paribas Cardif’s stake is likely to reduce to 12.9% from current 22%. This is to maintain minimum public shareholding of 25% in accordance with applicable law.