Max India approves 51% stake sale in Max Bupa Health Insurance to True North

The proposed transaction is an all-cash transaction and it values Max Bupa at an enterprise value of Rs1,001cr, the company's filing said.

Feb 26, 2019 07:02 IST India Infoline News Service

Max India, stated in a BSE filing today, that the company had approved stake sale of 51% in Max Bupa Health Insurance to True North. 

The filing read, "This is to inform you that the Board of Directors ("Board") of the Company at its meeting held today on February 26, 2019 has considered and approved a proposal relating to divestment of entire shareholding of the Company in its material subsidiary viz. Max Bupa Health Insurance Company Limited ("Max Bupa") (equivalent to 51% of Max Bupa's total issued and paid-up share capital) to True North Fund VI LLP (either directly or through any of its affiliates) ("Proposed Transaction").

It added, "The Proposed Transaction is an all-cash transaction and it values Max Bupa at an enterprise value of Rs1,001cr. The sale of Max Bupa's shares by the Company to True North Fund VI LLP pursuant to the Proposed Transaction is subject to the terms of the definitive agreements to be executed among the parties and receipt of requisite approvals including the approval of the Insurance Regulatory and Development Authority of India (IRDAI) and the shareholders of the Company.

Max India Ltd ended at Rs82.50 up by Rs2.1 or 2.61% from its previous closing of Rs80.40 on the BSE.
The scrip opened at Rs80 and touched a high and low of Rs88.50 and Rs79.95 respectively. A total of 14,60,710 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,158.11cr.




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