True North Buys 51% in Max Bupa

Private equity firm True North Tuesday bought a 51% stake in standalone health insurance company Max Bupa in an all-cash deal, valuing the company at ₹ 1,001 crore.

The board of Max India Tuesday approved the sale that will lead to a cash inflow of ₹511 crore for the seller. Bupa, the existing joint venture partner with 49% holing, retains its stake.

At the conclusion of the transaction, True North will nominate its directors to Max Bupa’s Board, while Max India’s nominated directors will step down. The use of the Max brand will be phased out over a period of two years and replaced with a suitable name. The Bupa brand name will continue as before.

“We are rebalancing our portfolio of businesses with a much sharper focus on growing shareholder value, and this transaction is a step toward that journey,” said Analjit Singh, founder & chairman, Max Group.

True North has investments in more than 40 Indian businesses over the last 19 years through its six investment funds, with a combined corpus of more than $2.8 billion.

“Higher growth, highest persistency —policy holders renewing their health insurance policies –and prospects of a good quality retail franchise were the triggers to purchase this business,” said Divya Sehgal, Partner, True North.

Source:- The Economic Times

Date:- 27th February,2019-Wednesday

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