Max Ventures & Industries Ltd (MaxVIL), a holding company of Max Group, announced entering into a definitive agreement with its existing Japanese partner, Toppan Inc., in Max Specialty Films Ltd (MSF), to divest its left 51% stake in two tranches in the speciality packaging films business for an enterprise valuation of ₹1,350 crore.
Toppan will also handle the debts of MSFL as part of the deal.
MaxVIL is divided into real estate in National Capital Region (NCR) and the speciality packaging films business. From now, it will not operate in the film business, but only in its real estate business in the premium residential and commercial space in Delhi-NCR.
The company will change its name from MaxVIL to Max Estates Ltd.
In 2017, Toppan acquired a 47% stake in MaxVIL in a deal of about Rs 200 cr.
“The Board of Directors have authorised the Investment and Finance Committee of the Board to explore various modalities for restructuring with its wholly-owned subsidiary Max Estates Limited and be renamed as Max Estates Limited after receiving required statutory approvals. The change of name will bring better synergies between the name and the operations of the company,” the company said in a regulatory filing late on Sunday.
The business will have a reserve of over 1,000 crore after the disposal, which will come from sale revenues, internal accruals, and prospective investment from financial investors. The business plans to use these funds to grow its residential and commercial real estate presence in Delhi-NCR.
New York Life Insurance Company, a long-time partner of the firm, is a strategic investor having a 23 per cent stake in the company. It has also made a project-level investment through SPVs (Special Purpose Vehicles), purchasing a 49 per cent share in Max Square, a commercial project on the Noida-Greater Noida Expressway. The company will continue to be a strategic/financial partner to support the company’s expansion plans.
MaxVIL is in later stage discussions with almost six landowners to acquire and develop prime land parcels across the Delhi-NCR region.