Max India soars after Japan’s MS&AD buys 26% stake in insurance biz
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Shares of Max India surged on the bourses today after the company said that Japan's Mitsui Sumitomo Insurance (MS&AD) will acquire 26% stake in Max New York Life Insurance.
Max New York Life, India's largest non-banking private insurance company, is a joint venture between New York Life and Max India. MS&AD will buy 9.37% stake from Max India for Rs 984 crore. The remaining 16.6% stake will be bought from New York Life Insurance.
Max India will purchase 9.37% stake from New York Life Insurance and will continue to hold 70% stake in the company post the transaction. The deal values the insurance business at Rs10,500 crore.
MS&AD Insurance Group, Japan's largest property-casualty insurer by revenue, is among the industry's most aggressive in expanding in Asia through acquisitions, buying both life and non-life assets to secure growth beyond weak home market.
At 12.20 pm, shares of Max India traded 5.6% higher on the Bombay Stock Exchange at Rs 198.85. It made an intraday high of Rs 207.50 earlier in the day. In contrast, the BSE Sensex traded with 1% gains at 17,382.
(With inputs from Reuters)