New Delhi: ICICI Bank on Monday said it proposes to sell 6 percent stake in its life insurance arm ICICI Prudential Life to two investors, including Premji Invest, for about Rs 1,950 crore.
The board decided to sell "4 per cent to Premji Invest & its affiliates and 2 per cent to Compassvale Investments Pte Ltd, an indirectly wholly-owned subsidiary of Singapore-based investment company Temasek", ICICI Bank said in a statement.
Premji Invest is the investment arm of Wipro Group chairman Azim Premji.
"The proposed transaction values the company at Rs 32,500 crore, reflecting substantial value created by the business since inception," it said.
The decision to sell 6 percent stake was taken at the board meeting of ICICI Bank.
The proposal to sell 6 percent is subject to government and regulatory approval, it said.
Upon completion of the transaction, ICICI Bank will hold approximately 68 percent share of the company.
Prudential Plc, the foreign joint venture partner will maintain its current holding of approximately 26 percent.
Besides, the board also approved appointment of Vishakha Mulye as a whole time director.
The appointment is subject to prior clearance of RBI, other regulatory and shareholder approvals and would be effective on the date of receipt of approval.
She is currently the MD and CEO of ICICI Venture Funds Management Company.
Last month, ICICI Bank decided to sell additional 9 percent stake in its general insurance arm for about Rs 1,550 crore to Prem Watsa run Fairfax Financial Holdings of Canada.
Upon completion of the transaction, ICICI Bank will hold about 64 percent in ICICI Lombard General Insurance Company Ltd, while Fairfax have 35 percent.
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Updated Date: Nov 17, 2015 08:03:58 IST