Max India will be exiting from its joint venture with International healthcare brand Bupa and will be selling its complete stake in the health care JV to private equity-True North. The deal is yet to get the final approval from the regulator, once that happens True India will be owning the majority 51% stake in healthcare company.
British health care company, Max India will continue with its 49% stake in the venture. In the all cash deal, True North valued Max Bupa at Rs 1001 Crore and bought 51% stake at a value of Rs 511 Crore.
“The company intends to utilize the proceeds to invest in both existing and new business opportunities which are currently under evaluation,” Max India said.
The deal will be concluded within the fiscal year 2020 once completed True North will appoint board director for Max Bupa and the Max India appointed directors will step down. The new Joint venture has decided to phase out the Max Brand within the next 2 Years and will be giving new name to this new Joint venture.
Commenting on the deal, Divya Sehgal, Partner, True North said, “As the health insurance sector grows in India, True North is looking to build the most trusted brand in health insurance in the country. We believe Max Bupa is one of the best positioned brands and businesses in the sector. The Max Group and Bupa have immensely contributed to the journey of Max Bupa and we look forward to building on the same in partnership with Bupa. Our priority is to work seamlessly with both teams at Max and Bupa through this transition towards the benefit of Max Bupa’s customers, employees and stakeholders.”