MAX GROUP LOOKS TO LIST THREE COS

Mumbai: The Max group is looking at listing three of its companies, Max India, Max New York Life and Max Healthcare. The timing of the listing procedure has not been finalised as of now. However, the decision would depend on the specifications and stipulations put in place by the regulator.

Addressing the media on Monday here, Max India chairman Analjit Singh said: “We are considering the move in order to make all these companies independent. It would also be more prudent to list these companies, especially from the viewpoint of investors’ interest.”

Max India, on Monday, announced that it has restructured its joint venture with New York Life, wherein Max India has increased its stake in Max New York Life to 74%, from 50% earlier. However, the Max group has given New York Life an option to purchase 24% stake in MNYL at a 10% discount, but this offer could be exercised only within the next eight years, i.e. by 2016.

The Max group plans to invest up to Rs 3,600 crore towards its expansion activities, including a rise in sales force and setting up new offices. Of this, funds worth Rs 1,232 crore have already been invested. The insurance company is expected to break even by 2011. MYNL has been currently valued at around Rs 10,000 crore. The company plans to provide products in the stream of out-patient care, investigations and prevention and wellness over the coming years.

Max India also plans to float a new company for health insurance, through a JV with UK-based Bupa Finance. The JV, known as Max Bupa Health Insurance, would have an initial share capital of Rs 100 crore, of which Max India would come in with a 50% equity participation. While the Bupa group would own 26%, the balance would be held by Analjit Singh and few of his family members via some intermediate companies. The group however does not intend foraying into any of the non-life areas.

Source: The Economic Times