The stake has been sold either directly or through its affiliates, the company said.
The board of directors of the company at its meeting held on February 26, 2019 has considered and approved a proposal relating to divestment of entire shareholding of the company in its material subsidiary –Max Bupa Health Insurance Company Limited (Max Bupa) (equivalent to 51 per cent of Max Bupa’s total issued and paid-up share capital) to True North Fund VI LLP, Max India said in a regulatory filing.
The proposed transaction is an all-cash transaction and it values Max Bupa at an enterprise value of Rs 1,001 crore.
Max India said that the deal has been at a consideration of Rs 510.51 crore, which the company will receive at the time of completion of the proposed transaction.
True North (formerly known as India Value Fund Advisors — IVFA) was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class industry leaders.
True North has successfully launched six separate investment funds with a combined corpus of over USD 2.8 billion including co-investments.
Max Bupa is a joint venture between Max India Ltd and the UK based healthcare services expert, Bupa.
Shares of Max India closed 2.61 per cent higher at Rs 82.50 on BSE.