Max Life

This transaction will effect acquisition of 99.1 million shares of Max Life at Rs 85 per share by Max Financial Services as per the put/call option which is approved by the company’s board on 3 March 2020. After acquiring the 5.17 per cent stake from Mitsui Sumitomo Company Limited (MSI), the stake in the life insurance company held by Max Financial Services will be 87 per cent

Max Financial Services being the promoter of insurer Max Life Insurance received the insurance regulator’s (Irdai) approval to acquire the remaining 5.17 per cent stake in the life insurance company held by Mitsui Sumitomo Company Limited (MSI).

Expectedly, this transaction will be completed in the next fortnight, said the company in a statement on 28 November.

This transaction will effect acquisition of 99.1 million shares of Max Life at Rs 85 per share by Max Financial Services as per the put/call option which is approved by the company’s board on 3 March 2020.

The chairman of Max group, Analjit Singh, said that the transaction will make the structure of the holding company simpler and help consolidate the shareholding in Max Life. It will benefit all our shareholders by attracting more investor interest.

Max Financial Services held stake of 72.52 per cent in Max Life Insurance whereas MSI had 25.48 per cent stake. After the share swap agreement was executed, which entailed Max Financial Services swapping 20.57 per cent stake of Max Life held by MSI for 21.87 per cent of its own stake. Late, MSI bought 0.26 per cent stake in the life insurance company from Axis Bank and was holding 5.17 per cent stake in Max Life.

After acquiring the 5.17 per cent stake from MSI, the stake in the life insurance company held by Max Financial Services will be 87 per cent. The rest will be held by Axis Bank, which is the third-largest private sector bank in India.