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MAX INDIA LTD. - Outcome of Board Meeting - Bupa to pay Rs. 191 Crore to Max India to Raise Stake in Max Bupa by 23%
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23 Nov 2015
Max India Ltd has informed BSE that the Board of Directors of the Company in its meeting held on November 23, 2015 approved the following:&lt;BR&gt;&lt;BR&gt;(i). To further strengthen the relationship with the JV partner in Max Bupa Health Insurance Company Limited (Max Bupa), the Company has decided to divest 23% stake in Max Bupa in favour of Bupa Plc., UK. Bupa will pay Rs. 191 crores (as increased by 23% of further capital infusions by shareholders in Max Bupa till the transaction is implemented) to Max India in an all cash transaction, to increase its stake in Max Bupa from 26% to 49%. Correspondingly, the Companys shareholding in Max Bupa will come down to 51% from the present level of 74%. The aforesaid proposal is subject to the approval of Foreign Investment Promotion Board and Insurance Development and Regulatory Authority of India,&lt;BR&gt;&lt;BR&gt;(ii). Capital contribution of up to Rs. 150 crores by the Company in Max Healthcare Institute Limited, an equal joint venture between the Company and Life Healthcare, South Africa, for its proportionate share of 46% equity stake in Max Healthcare, to enable Max Healthcare acquire a controlling stake of 51% in Saket City Hospitals Private Limited.&lt;BR&gt;&lt;BR&gt;The Board of Directors also took note of Embedded Value report as at September 30, 2015, shared by Max Life Insurance Company Limited (Max Life), its subsidiary. The key highlights the report are as below:&lt;BR&gt;&lt;BR&gt;(i). The Embedded Value of Max Life as at 30th September 2015 is at Rs. 5,363 crores, after allowing for interim dividend payout of Rs. 220 crores to the shareholders of Max Life.&lt;BR&gt;&lt;BR&gt;(ii) The annualised operating return on Embedded Value for the half year ended September 30, 2015 at 14.8% and the annualised return is at 13.8%.&lt;BR&gt;&lt;BR&gt;(iii) The Value of New Business written during the half year ended September 30, 2015 is Rs. 163 crores and the portfolio new business margin is 20.2% (before cost overrun) and 17.0% (after cost overrun)&lt;BR&gt;&lt;BR&gt;In this regard, the Company has issued a Press Release titled &quot;Bupa to pay Rs. 191 Crore to Max India to Raise Stake in Max Bupa by 23%&quot;.
View all announcements for MAX INDIA LTD. Source: BSE India

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