Axis Bank to buy 29 pct stake in Max Financial in phase I; deal likely valued at Rs 1,600 cr

Axis Bank and Max Financial Insurance Services have sealed a deal for a first phase stake buy by the private lender in the insurer. According the the information shared by Axis Bank with BSE (Bombay Stock Exchange), the deal was sealed yesterday and Axis Bank will buy 29 per cent stake of the Max Financial Services insurance business though this deal. Volume of the deal is yet to come out but market experts are expecting it to be around Rs 1,600 crore.

Speaking on the Axis Bank and Max Financial deal, Zee Business Managing Editor Anil Singhvi said, "We have been reporting for the last few days that Axis Bank and Max Financial are in negotiations for a 2-phased deal. In it Axis Bank will buy 70 per cent stake of Max Financial Insurance. This 29 per cent stake buy is first phase of the deal, which is now in the public domain as well."

In its letter to the BSE Axis Bank said, "We wish to inform you that the Board of Directors at its meeting held on Monday, 27th April 2020, has approved entering into an agreement with Max Financial Services Limited (MFSL) to acquire 29% stake in Max Life Insurance Company Limited. The Bank will acquire shares from Max Financial Services and will sign a Shareholders’ Agreement and a Share Purchase Agreement in relation to the same." The said transaction is subject to satisfaction of conditions precedent, including receipt of regulatory approvals from Reserve Bank of India, Insurance Regulatory and Development Authority of India and Competition Commission of India, among others.

See Zee Business Live TV streaming below:
 

Zee Business TV had reported exclusively in the morning about the deal and said that around 29 per cent stake of insurance business of the Max Financial Services will be bought by Axis Bank in this deal. Zee Business further reported that Axis Bank and Max Financial Services will go for two phased deal negotiations in which Axis Bank will buy 70 per cent stake of Max Financial Services insurance business. This is the first phase of the deal.

See Zee Business tweet below:
 

#BreakingNews | एक्सिस बैंक का मैक्स फाइनेंशियल सर्विसेज के साथ 29% हिस्सा खरीदने के लिए करार#AxisBank #MaxFinancial @AnilSinghvi_ pic.twitter.com/tfsg57M9KE

— Zee Business (@ZeeBusiness) April 28, 2020

As said earlier, the said transaction is subject to regulatory approvals from Reserve Bank of India, Insurance Regulatory and Development Authority of India and Competition Commission of India, among others. It may take 609 month for completion of the first phase of Axis Bank Max Financial Insurance deal.