Standard Life Aberdeen nets GBP652 million from latest HDFC Life sale

(Alliance News) - Standard Life Aberdeen PLC on Tuesday continued to reduce its stake in its Indian insurance venture.

The shares in HDFC Life Insurance Co - which offers individual and group insurance - were sold on both the National Stock Exchange of India Ltd and the Bombay Stock Exchange Ltd.

SLA said a wholly owned subsidiary netted GBP652 million from the sale of 100.8 million shares in HDFC Life, a 4.99% stake in the Indian operation, at an average price of INR672.68.

Proceeds from the share sale will go towards general corporate purposes.

Standard Life Aberdeen's remaining holding in HDFC Life - the company's venture with Indian housing finance provider Housing Development Finance Corp Ltd - is 3.89%, worth about GBP530 million.

Standard Life realised GBP370 million following the IPO of HDFC Life in November 2017, with its 35% stake at the time valued at GBP2 billion.

Since the start of 2018, however, the asset manager has been offloading its shares, with sales in 2020 alone.

SLA pocketed GBP172 million from a sale of HDFC Life shares in late 2020, having netted GBP207 million from a sale in early June 2020. This followed a GBP237 million sale in March 2020.

SLA also has been selling off its stake in its other Indian venture, netting around GBP263 million in June 2020, from sale of a 5.6% stake in HDFC Asset Management Co Ltd.

Following the disposal, the FTSE 100-listed company continues to own roughly 21% stake in the Indian fund manager, worth around GBP1.1 billion.

Shares in Standard Life Aberdeen, which is set to change its name to Abrdn PLC, were up 0.5% at 280.20 pence on Tuesday morning in London.

By Paul McGowan; paulmcgowan@alliancenews.com

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