PE house close to control of Max Bupa

February 27 2019 by InsuranceAsia News Staff

True North, one of India’s biggest private equity players, is set to buy Max Group’s 51% stake in Max Bupa Health Insurance for around US$72 million valuing the firm at US$155 million.

The deal for the Delhi-headquartered insurer is in the final stages and will be discussed by Max Bupa’s board at their next meeting, according to the Economic Times.

Mumbai-headquartered True North is leading a consortium including some smaller investors to help clinch the deal. It has been in exclusive talks to make the purchase since December.

True North says it “invests in mid-sized, profitable, India-centric businesses and then transforms them into world-class industry leaders that is built upon the foundation of strong values”.

Max India has declined to comment on the development.

There has been a flurry of M&A activity in India’s insurance sector during the past 24 months as the government tries to introduce more competition and opens up the market to foreign players.

In another move, Prathap Chandra Reddy and his family, founders of India’s Apollo Hospitals Enterprise, are looking to sell their holdings in Apollo Munich Health Insurance to repay debt.

Meanwhile, Dewan Housing Finance Corporation, which owns 51% in DHFL Pramerica Life Insurance, is planning to exit the life insurer by selling its entire stake. As a result US giant Prudential Financial would need a local partner.