New Delhi: Indian's insurance regulator
has approved divestment of 51 per cent stake of Max India in Max Bupa
Health Insurance Company to private equity firm True North.
India, a part of the $3.2 billion multi-business corporate Max Group
said that Insurance Regulatory & Development Authority of India
(IRDAI) has approved divestment of its stake in Max Bupa to True North.
all-cash transaction announced in February 2019 valued Max Bupa at an
enterprise value of Rs 1,001 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," the company said in a statement.
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."
to the company, True North is an active investor in Indian assets and
has invested in more than 50 Indian businesses over the last 20 years
through its six investment funds with a combined corpus of over $2.9
Over the years, True North has made productive
investments across the financial services and healthcare sector, to the
tune of Rs 7,300 crores, the company said.
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
utilise part of the proceeds to invest in both existing and new business
In addition, the company said that 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.