CBA sells 55% stake in unit Colonial First State to KKR for $1.1 billion

FILE PHOTO: The logo for the Commonwealth Bank of Australia adorns their head office in central Sydney, Australia, October 12, 2017. REUTERS/David Gray

(Reuters) - Commonwealth Bank of Australia CBA.AX said on Wednesday it will sell a 55% stake in unit Colonial First State to private equity firm KKR KKR.N for A$1.7 billion ($1.10 billion), in line with plans to focus on its core banking operations.

Australia’s largest bank and KKR also plan to undertake an investment programme. CBA said the deal would allow Colonial First State to become a more focused standalone business.

The deal is expected to be completed by the first half of calendar year 2021.

Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Himani Sarkar