Max Financial Services’ (MFS) board has approved a transaction which will allow Mitsui Sumitomo Insurance (MSI) to swap 20.57% of its shareholding in Max Life insurance with 21.87% stake in MFS. MFS and MSI are 73:25 joint venture partners in India’s fourth largest private Life Insurer Max Life Insurance Company.
This will enable the company to simplify the shareholding structure in its subsidiary and have more flexibility to attract strategic investments in Max Life in the future and yet maintain its significant majority ownership. The transaction will also provide MFS the option to purchase from MSI its balance shareholding in Max Life for cash at a price of Rs 85 per share.
Max Financial Services, a part of the Max Group, is the holding company for Max Life, India’s largest non-bank, private life insurance company.
