Max India intends to utilize the proceeds to invest in both existing and new business opportunities which are currently under evaluation.
“The board of the company at its meeting held on Tuesday, February 26, 2019, has approved a proposal relating to the divestment of entire 51 per cent shareholding of the company in its material subsidiary viz. Max Bupa Health Insurance Company to True North Fund VI LLP (either directly or through any of its affiliates),” Max India said in a regulatory filing.
The proposed transaction is an all-cash transaction and it values Max Bupa at an enterprise value of Rs 1,001 crore and is subject to requisite regulatory approval. The transaction is expected to be completed within FY 2020, it added.
At 10:07 am, Max India was trading 6 per cent lower at Rs 77.45 on the BSE. In comparison, the S&P BSE Sensex was up 0.81 per cent at 36,265 points. A combined around two million equity shares changed hands on the NSE and BSE so far.