India: HDFC, Max announce life insurance merger terms

Visual from HDFC website

HDFC Life Insurance Co. Ltd and Max Life Insurance Co. Ltd on Friday said that they had finalised the terms of their merger.

Under the three-step process, Max Life will first merge with its parent Max Financial Services Ltd. Second, the insurance unit will be demerged from this amalgamated entity into HDFC Life. Then, the non-insurance businesses of Max Financial will merge into group company Max India Ltd.

The boards of all four firms approved the terms, the companies said in a joint statement.

The deal envisages shareholders of Max Life getting one share of Max Financial for every 4.98 shares of Max Life. In the second step, shareholders of Max Financial (post the amalgamation with Max Life) will get 2.33 shares of HDFC Life for each share they hold, the statement said.

Moreover, promoters of Max Life, essentially Analjit Singh and his family and related firms, will get Rs.850 crore as a non-compete fee from the merged entity. Of this Rs.501 crore will be paid upfront and Rs.349 crore will follow later in three equal annual instalments.

Housing Development Finance Corp. Ltd and Standard Life (Mauritius Holdings) will be the promoters of the merged entity, which will be named HDFC Life.

HDFC will cease to be the holding company of HDFC Life post the merger and will hold around 42.5% of the merged entity, the joint statement said.

Also Read:

India: HDFC Life-Max merger ratio likely at 10:24

India: HDFC Standard Life, Max Financial to initiate talks on merger

This article was first published on Livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.