KKR, Temasek invest $266m in India's SBI Life

The firms will each purchase 19.5 million shares currently held by SBI for INR460 each, valuing the company at INR460 billion. SBI's stake in SBI Life will drop from 74% to 70.1% after the deal, while BNP Paribas, its joint venture partner in the company, will retain its 26% holding. The deal has been approved by SBI's board but still requires the green light from regulators.

SBI and BNP Paribas launched SBI Life in 2001. The new investment makes it India's highest-valued insurance company, surpassing ICICI Prudential Life Insurance, which is also backed by Temasek.

"We see exciting growth opportunities for Indian insurers stemming from increasing savings, a rising middle class and rapid urbanization," said Sanjay Nayar, CEO of KKR India, in a statement. "We look forward to supporting SBI Life's long-term growth alongside these high-caliber partners, and are excited to enhance financial access for citizens across the country and promote the development of a more inclusive financial services industry."

KKR made its investment from its second pan-Asian fund, which closed at $6 billion in 2012. The firm's previous investments in the India insurance space include the purchase in February of a 10% stake in Max Financial Services, a spin-off of the Max Group that controls life insurance provider Max Life.

Last month the GP launched its third pan-Asia fund after the second vehicle passed the 70% commitment threshold. The new fund has a target of up to $7 billion and will seek buyout and growth capital opportunities across a range of industries in Asia.

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• Topics
• South Asia
• Financials
• PIPEs
• India
• KKR
• Temasek Holdings
• insurance
• Financial Services