Mumbai: Private lender Axis Bank has proposed to buy a 17 per cent stake in Max Life Insurance, instead of 29 per cent earlier, the lender and Max Financial Services, the parent of the insurance company said in an exchange filing.
“Axis Bank now proposes to acquire 17.002% of the equity share capital of Max Life, resulting in total ownership of 18.0% post the transaction,” Axis Bank and Max Financial Services said in an exchange filing.
“The parties have executed the definitive agreements. Axis Bank and Max Life will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval,” it added.
Currently, Analjit Singh-promoted Max Financial holds 73.5 per cent stake in Max Life, Japan-based Mitsui Sumitomo 25.5 per cent while Axis Bank holds nearly 1 per cent stake.
On April 28, Axis Bank had announced an agreement to raise its stake in Max Life to 30 per cent from 1 per cent for Rs 1,592 crore, with an intent to form a 30:70 joint venture with Max Financial Services.
While the company did not clarify on the reason for the change of plan, media reports have pointed that the changes were made after insurance sector regulator the Insurance Regulatory and Development Authority of India (Irdai) had raised concerns over certain clauses of the merger agreement.
Ahead of the announcement, Axis Bank closed 1.2 per cent higher at Rs 445.70, while Max Financial Services dropped 1.4 per cent to Rs 549.70.