Max India to sell 23% stake in insurance JV to British partner Bupa Plc for $29m

Visual from Max India website

Analjit Singh-promoted Max India Ltd on Monday said it will sell 23% of its stake in health insurer Max Bupa Health Insurance Co. Ltd to British partner Bupa Plc. for Rs.191 crore.

Once the transaction is complete, Max India’s holding in the insurance firm will fall from 74% to 51%, while Bupa’s stake will rise from 26% to 49%.

The deal, which needs approval from the Foreign Investment Promotion Board and the Insurance Regulatory and Development Authority of India (Irdai), will be the largest in terms of stake size in the general insurance space, after government permitted foreign firms to hold 49% in insurance firms, up from 26% earlier.

Max Bupa had first spoken of its partner’s intent to increase stake in January.

The insurance laws amendment ordinance 2014, which proposed to raise the foreign direct investment (FDI) limit in insurance to 49%, was cleared by Parliament during this year’s budget session.

Max Bupa is the seventh-largest private health insurer in India, with a customer base of at least 2 million.

The deal took longer than expected because there were “certain ambiguities” in the new laws regarding ownership and control after the FDI limit hike, according to the head of a private life insurer.

“The government clarified on the new FDI norms in this regard only a couple of months back. We will soon see more such deals in the insurance space,” he said on condition of anonymity.

Further, following a board meeting, Max India said in an exchange notice that it will contribute Rs.150 crore of capital in Max Healthcare Institute Ltd., an equal joint venture between Max India and Life Healthcare, South Africa.

The infusion is intended to enable Max Healthcare to acquire a controlling stake of 51% in Saket City Hospitals Pvt. Ltd., the company said.

Also Read: India: Max Healthcare buys BK Modi’s Saket City Hospital in Delhi

Malaysia’s IHH Healthcare acquires 51% in Continental Hospitals

India: Fortis Healthcare to buyback 3.1% in SRL for $16m

This article was first published on Livemint.com

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

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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.