GIC Consortium to Buy Blackstone's Stake in Rothesay Life Valued at $7.39 Billion

   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 [e-mail]

(END) Dow Jones Newswires

September 30, 2020 04:30 ET (08:30 GMT)

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