Reatil banking company BNP Paribus Cardiff sells its 5.074% stake in SBI Life Insurance in a block deal, private sector insurer, SBI Life Insurance said in a exchange filing.
“We would like to clarify that this sale is not being undertaken as per the methods prescribed by SEBI for achieving the minimum public shareholding (MPS) threshold, and is not being undertaken with a view to comply with the MPS threshold,” it said.
Cardiff clarified that the deal is done to comply with market regulator’s MPS norms. However, it said that it is committed towards ensuring that the insurer achieves the MPS threshold during the compliance period.
With this block deal in place, the stake of BNP Paribus will reduce to 7.7% from earlier 12.7%.
Similarly, earlier this month Cardiff off-loaded its 9.2% stake in Indian insurer selling it to American international private equity firm, Carlyle Group’s arm, CA Emerald Investments in deal worth around ₹5,500 crore,reducing its stake from about 22% to country’s largest private sector insurer, SBI Life Insurance.
Post deal announcement, the shares of SBI Life Insurance fell by 6.03% and closed at ₹579.55 apiece on the BSE.