Max Financial Services, the promoter of the insurer Max Life Insurance, has received approval from the insurance regulator (Irdai) to buy the remaining 5.17% stake in the life insurance company held by Mitsui Sumitomo Ltd (MSI).
The deal is expected to close within the next two weeks, the company said in a statement on Monday.

The deal requires Max Financial Services to purchase 99.1 million Max Life shares at Rs 85 each, subject to put/call options approved by the company’s board of directors on March 3, 2020.

Analjit Singh, chairman of Max Group, said: “The transaction will simplify the holding company structure and help strengthen our stake in Max Life, which will attract more investor interest, thereby benefiting all our shareholders.”

Max Financial Services owns 72.52% of Max Life Insurance, while MSI owns 25.48%. Following the execution of the share swap agreement, Max Financial Services exchanged 20.57% of the shares held by MSI in Max Life for 21.87% of its shares, and MSI subsequently purchased 0.26% of the shares of the life insurance company from Axis Bank and held Max Life 5.17% stake in Life.

After acquiring a 5.17% stake from MSI, Max Financial Services will hold an 87% stake in the life insurer, with Axis Bank, India’s third-largest private lender, holding the remainder.