IAG (ASX:IAG) agrees sale of 26% interest in SBI General

IAG (ASX:IAG) has agreed to sell the whole of its 26 per cent interest in its joint venture with the State Bank of India, SBI General Insurance Company.

This will be via two transactions, Napean Opportunities will acquire 16.01 per cent interest and an affiliate of Warburg Pincus LLC to acquire a 9.99 per cent interest.

The transactions, which are subject to regulatory processes and approvals, are expected to complete during IAG’s financial year ending 30 June 2020.

Total consideration amounts to over $640 million based on the current exchange rate.

Once both transactions are complete, this is expected to result in an increase in IAG’s regulatory capital position of more than $400 million and a net profit after tax of over $300 million, which will be recognised in IAG’s FY20 results.

Shares in IAG (ASX:IAG) closed 1.5 per cent higher at $7.95.
 
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Source: Finance News Network