Max India increases stake in life insurance JVMax India increases stake in life insurance JV
Apnainsurance.com Research Bureau
21 Jul 2008
Max India raised its stake in Max New York Life (MNYL) from 50% to 74%.
The value of MNYL has been estimated at over Rs 10,000 crore based on 2009-10 premium estimates by a research report. About 80% of Max India's revenues come from MNYL.
At inception in 2003, the partners, Max India and New York Life, signed an options agreement where 26% was contributed by New York Life, 50% by Max India, and the remaining 24%, an advance paid to Max India by New York Life, amounting to Rs. 174.
The fresh joint venture agreement has Max India increasing its stake to 74% by repaying the Rs. 174 crore. New York life has an option to buy this 24% at 90% of fair market value till 2016. The 10% discount is in place for the promoter-shareholder.