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SBI to sell upto 5% in SBI Life to non-promoter entity

Expects to conclude deal in FY17

State Bank of India will sell upto five per cent stake in Life Insurance to non-promoter entity for price discovery for and monetise holding.

The country's largest lender expects to complete sale process in this financial year. This transaction would help to discover pricing for life insurer which would be listed in the future, Senior executives.

The Executive Committee of the Central Board (ECCB) (on October 14, 2016) approved to dilute upto five per cent stake of in Life to a non-promoter entity, informed the stock exchange today.

The merchant banking sources said Life Insurance had announced its embedded value as Rs 12,999 crore on March 31, 2016. The promoter (SBI) may seek atleast 2.5-three times the embedded vale as a valuation for insurance company.

The recent listing of and Max Life's acquisition by HDFC Standard Life would guide the pricing for SBI's stake.

Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. owns 74 per cent of the total capital and BNP Paribas Cardif the remaining 26 per cent. will raise its stake in the company by 10 per cent to 36 per cent.

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Business Standard
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Business Standard

SBI to sell upto 5% in SBI Life to non-promoter entity

Expects to conclude deal in FY17

Abhijit Lele  |  Mumbai 

SBI to sale upto 5% in SBI Life to non-promoter entity

State Bank of India will sell upto five per cent stake in Life Insurance to non-promoter entity for price discovery for and monetise holding.

The country's largest lender expects to complete sale process in this financial year. This transaction would help to discover pricing for life insurer which would be listed in the future, Senior executives.



The Executive Committee of the Central Board (ECCB) (on October 14, 2016) approved to dilute upto five per cent stake of in Life to a non-promoter entity, informed the stock exchange today.

The merchant banking sources said Life Insurance had announced its embedded value as Rs 12,999 crore on March 31, 2016. The promoter (SBI) may seek atleast 2.5-three times the embedded vale as a valuation for insurance company.

The recent listing of and Max Life's acquisition by HDFC Standard Life would guide the pricing for SBI's stake.

Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. owns 74 per cent of the total capital and BNP Paribas Cardif the remaining 26 per cent. will raise its stake in the company by 10 per cent to 36 per cent.

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SBI to sell upto 5% in SBI Life to non-promoter entity

Expects to conclude deal in FY17

Expects to conclude deal in FY17 State Bank of India will sell upto five per cent stake in Life Insurance to non-promoter entity for price discovery for and monetise holding.

The country's largest lender expects to complete sale process in this financial year. This transaction would help to discover pricing for life insurer which would be listed in the future, Senior executives.

The Executive Committee of the Central Board (ECCB) (on October 14, 2016) approved to dilute upto five per cent stake of in Life to a non-promoter entity, informed the stock exchange today.

The merchant banking sources said Life Insurance had announced its embedded value as Rs 12,999 crore on March 31, 2016. The promoter (SBI) may seek atleast 2.5-three times the embedded vale as a valuation for insurance company.

The recent listing of and Max Life's acquisition by HDFC Standard Life would guide the pricing for SBI's stake.

Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. owns 74 per cent of the total capital and BNP Paribas Cardif the remaining 26 per cent. will raise its stake in the company by 10 per cent to 36 per cent.
image
Business Standard
177 22

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