Max Group promoter Analjit Singh plans to sell stake in firm's financial services arm, realty assets to repay loans

Analjit Singh, the founder of Max Group, may sell a stake in his financial services subsidiary and realty assets for repaying loans, said a media report. Analjit plans to sell a minority stake in Max Financial Services (MFSL), the holding company of Max Life, and some other realty properties to repay loans it had raised through pledging of promoter shares in two listed companies, said a report in Business Standard. The promoters will retain the life insurance business, which they had planned to sell or merge with HDFC Standard Life Insurance a few years ago and withdrew from the decision in July 2017, said the report. [caption id=“attachment_6066301” align=“alignleft” width=“380”] File image of Analjit Singh. News 18[/caption] In August last year, Analjit was planning to refinance debt worth $500-600 million at the holding company level, according to a report in Mint. In February, Max India sold its entire 51 percent stake in Max Bupa Health Insurance Co (Max Bupa) to private equity firm True North Fund VI LLP for over Rs 510 crore. The board of directors of the company at its meeting held on 26 February, 2019, 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 percent of Max Bupa’s total issued and paid-up share capital) to True North Fund VI LLP, it said. The proposed transaction is an all-cash deal and it values Max Bupa at an enterprise value of Rs 1,001 crore. Max India said 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. In early February this year, Max Group had announced that Analjit would take over as the chairman of Max India and Max Life. In December last year, KKR-backed hospital management firm Radiant Life Care had said that it would acquire a majority stake in Max Healthcare through a merger to create a combined entity valued at Rs 7,242 crore. As part of the deal, Max India will demerge its non-healthcare businesses comprising of Max Bupa and Antara Senior Living into a new wholly-owned subsidiary of Max India whose shares will be listed separately on both BSE and NSE. — With PTI inputs