Mumbai: Max Financial Services (MFSL) has received insurance regulator Irdai’s nod to acquire the residual 5.2% in Max Life Insurance from Mitsui Sumitomo.
Max Financial will now buy 9.9 crore shares of Max Life at Rs 85 each, which is in line with the put/call option approved by the MFSL shareholders. The transaction is expected to be concluded in the next fortnight.
“The transaction will make the holding company structure simpler and help consolidate our shareholding in Max Life, which will benefit all our shareholders by attracting more investor interest,” said Max Group chairman Analjit Singh.
Earlier, MFSL held a 72.5% stake in Max Life and MSI had a 25.5% stake. In December 2020, MFSL swapped 20.6% of the paid-up equity share capital in Max Life held by MSI to MFSL in exchange for 21.9% of issued and paid-up share capital of MFSL (a share-swap transaction). In March 2021, MSI acquired 0.3% stake from Axis Bank.
MFSL was awaiting this approval from Irdai for the transfer of balance stake of 5.2% held by MSI. After completion of MSI balance stake buyout, MFSL shareholding in Max Life will increase to 87%.
Max Financial will now buy 9.9 crore shares of Max Life at Rs 85 each, which is in line with the put/call option approved by the MFSL shareholders. The transaction is expected to be concluded in the next fortnight.
“The transaction will make the holding company structure simpler and help consolidate our shareholding in Max Life, which will benefit all our shareholders by attracting more investor interest,” said Max Group chairman Analjit Singh.
Earlier, MFSL held a 72.5% stake in Max Life and MSI had a 25.5% stake. In December 2020, MFSL swapped 20.6% of the paid-up equity share capital in Max Life held by MSI to MFSL in exchange for 21.9% of issued and paid-up share capital of MFSL (a share-swap transaction). In March 2021, MSI acquired 0.3% stake from Axis Bank.
MFSL was awaiting this approval from Irdai for the transfer of balance stake of 5.2% held by MSI. After completion of MSI balance stake buyout, MFSL shareholding in Max Life will increase to 87%.