The Insurance Regulatory and Development Authority of India (IRDAI) has approved ’s proposal to acquire 12% stake in Max Life along its subsidiaries Axis Capital and Axis Securities, Max Financial said in a statement on Wednesday.
As per the proposed transaction, Axis Entities have the right to acquire up to 19% stake in Max Life, of which, Axis Bank proposes to acquire up to 9%, and Axis Capital Limited and Axis Securities Limited together propose to acquire up to 3% of the share capital of Max Life in the first leg of the transaction.
In addition, Axis Entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years.
As per terms of the original deal Axis Bank in April 2020 had first announced its plans to raise its stake in Max Life to 30% from 1% for a deal worth ?1,592 crore at an agreed price of ? ?28.61 per share. This was met with stiff resistance from both RBI and IRDAI on various counts.
Analjit Singh, chairman of Max Group said in the statement: “We have been looking forward to bringing Axis Bank in this construct as a joint venture partner in Max Life.”