New York Life to invest Rs 121 cr in Max Ventures
Chennai, Jan 9 (IANS) US-based New York Life Insurance Company’s subsidiary will acquire 22.51 per cent stake in Max Ventures and Industries Ltd for Rs 121 crore at Rs 78 per share, the Indian company said on Monday.
In a statement, Max Ventures said that subject to company shareholders’ approval, a subsidiary of New York Life would acquire the stakes. The stake acquirer would also nominate its nominee on the board of Max Ventures.
The Max Ventures board also proposed allotment of share warrants to promoters equal to 4.76 per cent stake of the post-issue share capital.
These share warrants will be issued at Rs 78 per warrant aggregating to Rs 26.9 crore and will be convertible into equivalent equity shares within 18 months.
Post conversion, the promoter group’s stake in the company would be around 38.02 per cent.
“Max has a long standing relationship with New York Life. The company was our first major partner when Max was reinvented as a service oriented company in 2001,” Analjit Singh, Founder and Chairman Emeritus, Max Group and Chairman of Max Ventures was quoted as saying in the statement.
According to Sahil Vachani, Managing Director of Max Ventures, the funds coming into the company will be invested in manufacturing, real estate development and education, and will provide intellectual and financial capital to promising and proven early-stage organisations.
New York Life and the Max Group have a longstanding association. In 2001, the two entities partnered to set up Max New York Life – one of India’s largest private life insurance companies.
In 2012, New York Life sold its 26 per cent stake in Max New York Life to Mitsui Sumitomo Insurance Co. Ltd., after which the life insurance company was renamed Max Life.