The private lender in an exchange filing said “Axis Bank now proposes to acquire 17.002% of the equity share capital of Max Life, resulting in total ownership of 18.0% post the transaction. The parties have executed the definitive agreements,” adding “Axis Bank and Max Life will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval.”
As of April 2020, Max Life Insurance was owned by Max Financial Services (MFS) and Mitsui Sumitomo Insurance (MSI) in a ratio of 72:25. As per the agreement outlined by Axis Bank earlier, MSI would swap its 20.5% stake for 21.5% stake in MFS, which would also acquire the remaining 5% to make it a 70:30 joint venture between Max Financial Services and Axis Bank. Neither MFS nor Axis Bank specified the stake purchases and sale that would occur to bring the revised deal to light.
Axis Bank first announced plans to acquire Max Life Insurance in April 2020, in a deal which would also see the insurer use the private lender’s name in its tagline. In a statement issued earlier, Axis Bank said it had generated Rs 38000 crores of premium through partnerships with Max Life catering to 19 lakh customers.
