Highlights
- Prudential sells 4.5 per cent stake for 49 billion rupees (approximately $545 m).
- ICICI Prudential Asset Management's $ 1.2 bn IPO opens Friday.
- Proceeds to be returned to Prudential shareholders pending approvals.
British insurance giant Prudential has sold a 4.5 per cent stake in ICICI Prudential Asset Management for 49 billion rupees (about $545 m), the company announced on Thursday.
The transaction comes just days before the Indian fund manager's $ 1.2 bn initial public offering opens on Friday.
The fund house operates as a joint venture between ICICI Bank, India's second-largest private lender which holds a 51per cent stake, and Prudential, which owns the remaining 49 per cent. Following this sale, Prudential's shareholding in the asset management firm will be reduced.
A consortium of prominent investors acquired the shares from Prudential, including Abu Dhabi Investment Authority, the family offices of Indian business leaders Azim Premji and Rakesh Jhunjhunwala, and several major insurers including SBI Life, HDFC Life, and Go Digit General Insurance. ICICI Bank itself also acquired shares valued at 21.40 billion rupees.
The upcoming IPO will see ICICI Prudential Asset Management refrain from issuing any new shares. Instead, Prudential will be the sole seller, offloading a 10 per cent stake in the company.
The stock is scheduled to list on Indian exchanges on December (19). Prudential stated that the proceeds from both the private placement and the forthcoming IPO will be distributed to its shareholders, though this remains subject to obtaining necessary regulatory and shareholder approvals.
The transaction marks a significant milestone for ICICI Prudential Asset Management as it prepares to enter the public markets, whilst providing Prudential with an opportunity to realise returns on its Indian investment.
