MFSL receives IRDAI nomination to acquire Mitsui Sumitomo’s remaining 5% stake

0
1

Max Financial Services Limited (MFSL) announced that it has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to acquire Mitsui Sumitomo Company Limited’s (MSI) remaining 5.17% stake in Max Life Insurance Company Limited ( MaxLife). The transaction is expected to close in the next two weeks.

This transaction includes the purchase of 9.91 crore shares of Max Life on 85 per share by MFSL, the parent company of Max Life, under the Put/Call option approved by the Board of Directors of MFSL on March 3, 2020 and subsequently by its shareholders on May 27, 2020.

See also  KYC mandatory for purchasing health, car and other insurance from January 1

Analjit Singh, Chairman of Max Group, said: “We thank IRDAI for this approval. The transaction will simplify the holding company structure and help consolidate our stake in Max Life, which will benefit all our shareholders by attracting more investor interest.”

Previously, MFSL held a 72.52% stake in Max Life and MSI held a 25.48% stake. In December 2020, MFSL exchanged 20.57% of the paid-up share capital in Max Life held by MSI to MFSL in exchange for 21.87% of the issued and paid-up share capital of MFSL (Share Swap Transaction).

See also  Irdai asks insurers to use the professional registry when providing indemnity coverage

In March 2021, MSI acquired a 0.26% stake in Axis Bank, increasing MSI’s stake in Max Life to 5.17%. Subsequently, MFSL awaited this approval from IRDAI for the transfer of the 5.17% balance interest held by MSI. Upon completion of MSI balance buyback of 5.17%

MFSL’s interest in Max Life will increase to 87%.

Max Financial Services Limited (MFSL) is part of India’s largest business conglomerate, the Max Group. MSFL focuses on life insurance and actively owns and manages a majority stake of 81.83% in Max Life Insurance, India’s largest non-bank private life insurance company.

See also  Fires become more deadly as firefighter recruitment declines

Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life – part of the $4 billion Max Group, an Indian multi-business company – is India’s largest non-bank private life insurance company and the fourth largest private life insurance company.

Catch all business news, market news, major news events and latest news updates on Live TUSEN. Download the TUSEN News app to receive daily market updates.

More or less

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here