The agreement will see the shareholding in Kotak Mahindra Old Mutual Life Insurance pass on to joint venture partner Kotak Mahindra Bank, with an aimed for completion date during the second half of 2017.
The conclusion of the transaction, subject to approval from Indian regulators, will also end the joint venture arrangement, Old Mutual said in a stock market statement on Friday.
The deal includes the respective put and call option arrangements between the parties relating to a 23% stake in the joint venture.
Old Mutual said it will use the proceeds from the transaction “for general corporate purposes” but gave no other explanation for the exit.
Rothschild acted as financial adviser to the deal for Old Mutual.
There were also reports earlier this month that Old Mutual is planning to pull out of China after putting its stake in a joint venture there up for sale.
Old Mutual’s exit from India follows another international company announcement, by Standard Life in March that it had agreed to sell its wholly-owned Hong Kong life operation to its Chinese joint venture company Heng An Standard Life Insurance Company (HASL), underlining its move towards an investment-led business focus.
