Max Life’s Board to be recast with three Axis nominees
Axis Entities have the right to acquire another 7% in Max Life, Axis Bank said in a statement
Axis Bank Ltd on Tuesday said that it has become co-promoters of Max Life Insurance Company Limited, after completion of the acquisition of 12.99% stake collectively by the Axis Entities in the company.
"The Board of Max Life recorded the closure of the deal today. The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year," the private lender said in a regulatory filing.
Max Life’s holding company Max Financial Services Limited and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020. Axis Bank had announced its intent to purchase a 30% stake in Max Life Insurance for a sum of around Rs. 1530 crore in April last year
The lender said that Axis Bank and its two subsidiaries—Axis Capital Limited and Axis Securities Limited – will collectively own 12.99% stake in Max Life after the consummation of the deal. "The Axis Entities have a right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals," the bank said in a statement.
"With the conclusion of this transaction, Max Life’sBoard will be strengthened further, with co-option of three nominee directors of Axis Entities on its Board," it said.
Commenting on strategic development, Amitabh Chaudhry, Managing Director &CEO, Axis Bank said: “Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade. We have the opportunity now to shape the future of the industry through continued leadership in products, technology,and customer-centricity..."
Analjit Singh, Chairman of Max Group and Max Financial Services, said, “The conclusion of this transaction is truly a monumental milestone, which will bring added strengthto Max Life and help it chart a new growth trajectory by combining the forces of the third largest private bank in Indiawith the fourth largest private life insurer in the country."
Axis Bank said that it has "shared a successful business relationship with Max Life for over a decade, providing long-term saving and protection products to nearly 20 lakh customers."