Axis Bank is set to acquire nearly 30% of Max Life Insurance Company from Max Financial Services Ltd., of Analjit Singh for Rs. 1,600 crore as per information available.
- Axis Bank is the fourth lasrgest private sector bank in the country and will become a strategic partner of the Life Insurance firm, in which Max Financial will ultimately hold 70% covering a two stage transaction.
- Max Financial Services Ltd will be divesting 28.6% stake in Max Life Insurance for a sum of Rs. 1600 crore in the second stage of Share sale transaction. The official news would come out once the board approval is obtained and the deal is finalized. The transaction is expected to be prized at the book value. Also Axis Bank will have three to four nominees on the board of Max Life Insurance Company as per information available. Both parties had signed distinctive and confidential agreement in the month of Feb 2020.
- Axis Bank currently owns a little less than 2% of Max Life Insurance, and with this, it will increase its stake subject to regulatory approvals.
- It may be recalled that Max Financial restructured the shareholding of Max Life in the month of March 2020.