ICICI to sell stake in life insurance unit to Temasek, Premji

Proposed investment values ICICI Prudential Life at Rs 32,500 cr

ICICI Bank , India's biggest private sector lender by assets, said on Monday it agreed to sell a 6 percent stake in its life insurance joint venture in two separate deals to billionaire Azim Premji and Singapore state investor Temasek.

The stake sales will value ICICI Prudential Life Insurance Co Ltd at Rs 32,500 crore ($4.9 billion), the bank said in a statement. That would mean the deals would be worth a combined Rs 1,950 crore.

Premji Invest and its affiliates will buy 4 percent of the company, India's biggest private sector life insurer, while a unit of Temasek will pick up a 2 percent stake, ICICI Bank said.

After the deals, ICICI Bank will own about 68 percent in the life insurance business and its joint venture partner Prudential Plc will hold 26 percent, the bank said.

($1 = Rs 65.9975)