US private equity firm Bain Capital and Sunil Munjal’s Hero Corporate Services could buy a controlling stake in Max Financial Services from Analjit Singh, according to The Economic Times report, published on Friday.
The report, citing people aware of the developments, said Munjal and Bain together may pick up 28.3 percent stake from Singh in an open offer to minority shareholders. If the deal goes through, the consortium’s holding in Max Financial will stand at 54.3 percent.
According to the ET report, they are also considering the option of buying just below 26 percent stake to avoid a mandatory open offer, and replacing Singh as the promoter.
Negotiation in this regard was going on to thrash out the deal contours, it said. Singh, for long, has been trying to exit most of his ventures to deleverage his balance sheet.
Singh’s flagship venture owns 71.79 percent stake in Max Life Insurance, India’s largest nonbank private life insurer. The Max Financial Services promoter will be able to raise about Rs 4,033 crore at current market price in case of full exit.
Munjal has been eyeing opportunities in the financial services space since his exit from Hero MotoCorp, the report said.
Representatives from Hero Corp and Bain are expected to join the board of Max Financial if the deal goes through, according to the report.
First Published: Jan 17, 2020 11:15 AM IST
