Transaction originally announced in Feb 2019, valuing Max Bupa at Rs 1001 Cr.
JV partner Bupa remains fully committed to the business
Customer policies to continue as before
Max India Limited, a part of the USD 3.2 billion multi-business corporate Max Group, today announced that the Insurance Regulatory & Development Authority of India (IRDAI) has approved divestment of its 51% stake in Max Bupa Health Insurance Company Pvt. Ltd. (Max Bupa), to the leading Private Equity firm True North1 . The all-cash transaction announced in February 2019 valued Max Bupa at an enterprise value of Rs 1001 crore. Bupa, the existing joint venture partner in Max Bupa, remains committed to the joint venture and will continue to play an active role as before through its Board positions and knowledge-exchange initiatives.
Post IRDAI approval, the transaction is now expected to be concluded within the next few weeks. All existing customer policies will continue unimpacted and all customer support channels will remain unchanged.
True North is an active investor in Indian assets. It has built deep knowledge and skills in the Indian market, investing in more than 50 Indian businesses over the last 20 years through its 6 investment funds with a combined corpus of over USD 2.9 billion. Over the years, True North has made productive investments across the financial services and healthcare sector, to the tune of Rs. 7,300 crores.
Commenting on the transaction, Mohit Talwar, Vice President, Max Group and MD, Max India, said, "The transaction will lead to a substantial cash inflow for Max India. As a part of our portfolio rebalancing exercise, we intend to utilize part of the proceeds to invest in both existing and new business opportunities.
We are confident that Max Bupa will continue to perform well under True North, ably supported by the founding JV partner Bupa."
Speaking on the development Maninder Singh Juneja, Partner, True North said, "We are delighted to receive the approval from the IRDAI. Along with our partner Bupa - global leaders in healthcare insurance, we look forward to building the country's most trusted and customer centric health insurance company. Our top priority is to continue to provide exceptional services to all Max Bupa customers, with the help of its employees and stakeholders."
Reaffirming its commitment to Max Bupa, David Fletcher, Chief Risk Officer for Bupa and Vice-Chairman of Max Bupa, said, "We are pleased to have received IRDAI approval to transition the controlling stake of Max Bupa from Max India to True North. Bupa is committed to the Indian health insurance market and sees exciting opportunities for accelerated growth over the coming years. We look forward to working with our new partner True North to grow the Max Bupa business."
The process of conclusion of Max Bupa's divestment will run in parallel and independent of the composite transaction involving demerger of Max India and the merger of Max Healthcare and Radiant-KKR.
1IRDAI approval granted to Fettle Tone LLP, an affiliate of True North Fund VI LLP.
Shares of Max India Ltd was last trading in BSE at Rs.79.7 as compared to the previous close of Rs. 78.3. The total number of shares traded during the day was 89919 in over 1572 trades.
The stock hit an intraday high of Rs. 84.8 and intraday low of 75.6. The net turnover during the day was Rs. 7322408.