Sumitomo Life Insurance Co. is nearing a deal to pay about $375 million for a stake in PT Bank Negara Indonesia’s life insurance unit, according to two people with knowledge of the matter.
Sumitomo Life, Japan’s fourth-largest life insurer, is buying 40 percent of the Bank Negara division in a transaction scheduled to be announced next week, said the people, asking not to be named because they’re not authorized to discuss the deal.
Bank Negara, controlled by Indonesia’s government, will issue new shares in its life insurance unit to Sumitomo Life, the people said.
Kousuke Miyatake, a spokesman for Sumitomo Life, declined to comment. Bank Negara is still negotiating on selling a stake in the unit and expects to reach a deal before year-end, Vice President Director Felia Salim said today. She said the Indonesian lender will likely remain a majority shareholder in the business, declining to be more specific.