GIC Consortium to Buy Blackstone's Stake in Rothesay Life Valued at $7.39 Billion
September 30 2020 - 4:45AM
Dow Jones News
By P.R. Venkat
Singapore sovereign-wealth fund GIC Pte. Ltd. and Massachusetts
Mutual Life Insurance Co. have agreed to buy Blackstone Group
Inc.'s stake in a U.K.-based insurance company in a transaction
valued at 5.75 billion pounds ($7.39 billion).
The consortium partners will acquire a 36% stake from funds
managed or advised by Blackstone's Tactical Opportunities in
Rothesay Life PLC, according to a joint statement by the companies
on Wednesday.
Under the terms of the transaction, GIC and MassMutual will each
become equal 49% shareholders. After the transaction, Rothesay Life
will have two substantial institutional shareholders, GIC and
MassMutual.
The deal comes after a record GBP16.3 billion of new business
underwritten in 2019 and continued strong momentum by Rothesay Life
in the first half of 2020.
Blackstone, GIC and MassMutual have been shareholders in
Rothesay Life since 2013.
Since their initial investment, Rothesay Life has grown its
assets under management to GBP56 billion from GBP7.5 billion, the
statement said.
"We look forward to working closely with MassMutual to add value
to Rothesay, as the company continues to strengthen its leading
position in pension de-risking solutions," GIC Chief Investment
Officer Yong Cheen Choo said.
The deal is subject to regulatory approvals.
Established in 2007, some of Rothesay Life's clients include the
pension schemes and customers associated with National Grid, Allied
Domecq, Cadbury's, British Airways, Asda and the Civil Aviation
Authority.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
September 30, 2020 04:30 ET (08:30 GMT)
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