True North to acquire 51% stake in Max Bupa Health Insurance for Rs 5,000

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Investor (PE) will acquire a 51 percent stake in Max group company, based in Delhi, reorganizing its activities

The all-cash transaction values ​​Max Bupa at Rs 1,001,000. Bupa, an existing joint venture partner at Max Bupa, remains invested; she will continue to play an active role in society as before, said a joint statement from the buyer and the seller.

At the conclusion of the transaction, appoint the directors to the Board of Directors of Max Bupa; The directors appointed by Max India will retire. The use of the Max brand will be phased out over two years. The Bupa brand will continue.

KPMG Corporate Finance was Max India's lead financial advisor in this bilateral transaction with AZB & Partners and Khaitan & Co were the legal advisors of Max India and True North, respectively.

The transaction is subject to the signing of final agreements and to the approval of the shareholders of Max India, with the exception of the regulatory bodies. It should be completed by 2019-2020.

The process will run in parallel and will be independent of the recently announced composite transaction, involving the split of Max India and the merger of with Radiant-KKR.

True North, formerly known as India Value Fund Advisors, has invested in just over 40 companies, through six investment funds in a combined $ 2.8 billion (23,000 crore) corpus. Over the years, True North has made productive investments across Canada. and the health sectors, Rs 5,700 crores.

He had agreed to buy 80 percent of for 1,300 crores of rupees in 2017, but Religare withdrew the agreement after a court had prevented the promoters from selling it in 2018.

Divya Sehgal, True North's partner, said, "As the health insurance industry grows in India, we are looking to build the country's most trusted brand. We believe Max Bupa is one of the best positioned in the industry. "

"Our priority is to work seamlessly with both Max and Bupa teams during this transition," he added.

Simeon Preston, General Manager of International Markets at Bupa, said, "Bupa is committed to Indian society. and sees exciting opportunities for growth. We look forward to working with our new partner, True North. "

Analjit Singh, founder and chairman of the Max group: "### We are rebalancing our business portfolio by focusing much more on the growth of shareholder value. This transaction is a step in this journey. We are proud of the high quality of organization we have created at Max Bupa and are confident that this performance will continue. & # 39; & # 39;

Mohit Talwar, Designated Vice President of Max Group, added: Our selection criteria for Max Bupa's potential investor were based on a common vision of the company, alignment on our joint venture partner, Bupa, and a commitment to investing in the sector. long-term growth of the company. In this context, we are fortunate to sell our majority stake in True North. "