This will be via two transactions, Napean Opportunities will acquire 16.01 per cent interest and an affiliate of Warburg Pincus LLC to acquire a 9.99 per cent interest.
The transactions, which are subject to regulatory processes and approvals, are expected to complete during IAG’s financial year ending 30 June 2020.
Total consideration amounts to over $640 million based on the current exchange rate.
Once both transactions are complete, this is expected to result in an increase in IAG’s regulatory capital position of more than $400 million and a net profit after tax of over $300 million, which will be recognised in IAG’s FY20 results.
Shares in IAG (ASX:IAG) closed 1.5 per cent higher at $7.95.