The Indian Private Equity (PE) firm True North Capital has agreed to acquire 51% stake in Bupa Health Insurance Company. True North is set to buy the entire 51% stake currently owned by Analjit Singh led Max India. Max India is going to divest their entire stake in Max Bupa Health to True North
The deal is valued at approximately Rs. 1,001 crores. At Present Max India received Rs. 510.51 crores as consideration from True North at the time of completion of the proposed transaction. The deal is is going to be fulfilled by the way of Share Purchase Agreement. KPMG Corporate finance is the exclusive advisor on this deal.
True North Capital, incorporated in the year 1999 is a mid- market investor. They have launched 6 separate investment funds. It has a combined assets of over USD 2.8billion.
Max India recently also divested Max Hospital to a Radiant Life (backed by KKR PE firm). It is a group holding company – Antara Senior Living and Max financial services.
Max Bupa Health Company was a Joint venture with Max India, in which 51% stake was of Max India and the remaining 49% stake was with Max Bupa.
Max Bupa is led by Ashis Mehrotra along with Rajesh Sud as a chairman who is a former chief of Max India. The company core business id to sell Insurance policies via strong agency force and bancassurance with HDFC, Bank of Baroda and Karur Vysaya Bank.
Max India on 26th February 2019, closed at Rs. 82.80 up by 2.86%.