Old Mutual is discarding a joint venture with a major bank in India as the British insurer continues to break up its business into four parts.
The insurer has agreed to sell its 26% stake in Kotak Mahindra Old Mutual Life Insurance Limited to its business partner Kotak Mahindra Bank Limited.
The deal still needs Indian regulatory approvals and is expected to be completed in the second half of 2017.
As of December 31, the carrying value in Old Mutual’s consolidated financial statements of its stake in the joint venture was £45 million.
The conclusion of the transaction will also terminate the joint venture arrangement, including the respective put and call option arrangements between the companies relating to a 23% stake in the joint venture.
Old Mutual said it will use the proceeds from the transaction for general corporate purposes.