Cyril Amarchand Mangaldas acted as the legal counsel Axis Bank Limited in relation to acquisition of 12.99% stake in Max Life Insurance Company Limited (Max Life) collectively by Axis Bank Limited (Axis Bank), Axis Securities Limited (Axis Securities), and Axis Capital Limited (Axis Capital) (collectively ‘Axis Group’) from Max Financial Services Limited (Max Financial). The deal will result in the Axis Group being co-promoters of Max Life.
The Transaction Team was led by Yash Ashar, Partner & Head – Capital Markets and Indranath Bishnu, Partner; and included Pranjita Barman, Principal Associate and Anirud Sudarsan, Associate.
The Axis Group, Max Financial and Max Life executed their share purchase agreement in April 2020. The transaction was approved by the Competition Commission of India (CCI) in January 2021 and the Insurance Regulatory and Development Authority of India (IRDAI) in February 2021. The Axis Group have a further right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals. As a part of the Transaction, the Axis Group has entered into a shareholders’ agreement with the existing promoters of Max Life (which includes Mitsui Sumitomo Insurance Company Limited) to record the inter se rights and obligations of the aforesaid parties.
The Transaction was signed on 27 April, 2020 and closed on 6 April, 2021.