Private sector lender Axis Bank and Max Financial Services Limited (MFS) has signed a definitive agreement to buy 29% stake in Max Life Insurance Company in an all cash deal, the bank said in a statement. Axis Bank which already has 1% stake in the insurer, will have 30% stake after the deal is closed.
Max Financial Services presently holds a 72.5% stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5% stake. Axis Bank also has a minor stake in the life insurer.
“The aforesaid transaction with Axis Bank follows the ongoing swapping by MSI of 20.6% stake that it holds in Max Life with a 21.9% stake in MFS. MFS also plans to purchase MSI’s balance stake in Max Life,” Axis Bank said adding it may take six to nine months to close the deal.
Amitabh Chaudhry, MD and CEO, Axis Bank, said, “We continue to believe in the long term prospects of India’s under-penetrated life insurance space, current environment notwithstanding. We see this joint venture creating immense value for our stakeholders given our long standing, high performing partnership with Max Life. We believe this transaction will allow us to deepen our working relationship leading to better integrated teams and infrastructure and a superior alignment in our approach.”
Source: Read Full Article