MFSL concludes stake swap with Mitsui Sumitomo

The allotment to the joint venture partner MSI is in consideration for the transfer of equity shares constituting 20.57 per cent of the paid-up share capital of Max Life held by it to MFSL.

Mumbai: Max Financial Services Ltd (MFSL) on Wednesday said it has concluded the swap of Mitsui Sumitomo Insurance Company’s (MSI) 20.57 per cent stake in Max Life Insurance Company Ltd (Max Life) with 21.87 per cent stake in MFSL. MFSL has allotted 7.54 crore equity shares of Rs 2 each constituting 21.87 per cent of the paid-up share capital to MSI, on a preferential allotment basis, a release said.

The allotment to the joint venture partner MSI is in consideration for the transfer of equity shares constituting 20.57 per cent of the paid-up share capital of Max Life held by it to MFSL. Post this allotment, the paid-up equity share capital of MFSL stands increased to Rs 69,00,65,184 and will effectively increase MFSL’s stake in Max Life to 93.10 per cent. Prior to the allotment, MFSL held a 72.5 per cent stake in Max Life and MSI owned 25.5 per cent stake.

Last month, MFSL had disclosed that it has received approval from Insurance Regulatory and Development Authority of India (IRDAI) for the proposed swap of 20.57 per cent stake in Max Life held by MSI to MFSL in exchange for 21.87 per cent stake in MFSL. “We thank Mitsui Sumitomo Insurance for their long-standing partnership. I am sure they will continue to contribute richly to Max Financial through their board participation,” Mohit Talwar, managing director, MFSL and vice chairman, Max Group said in the release.

The board of MFSL has also appointed MSI’s two nominees — Hideaki Nomura and Mitsuru Yasuda — as non-executive non-independent directors on the board of MFSL. MFSL had recently announced that Axis Bank and its subsidiaries, Axis Capital Ltd and Axis Securities Ltd, have entered into agreements with MFSL for acquisition of up to 19 per cent stake in Max Life, in accordance with existing laws and regulations.