Axis Bank Revises Stake Acquisition Deal With Max Life

On Friday, in a stock exchange filing, Axis Bank said that the bank and its subsidiaries have agreed to enter into revised agreements with Max Financial for the acquisition of up to 19.002 percent of the equity share capital of Max Life.

The private lender informed that while it had entered into an agreement with Max Financial Services Limited for the direct acquisition of 17.002 percent of the equity share capital of Max Life Insurance Company Limited, in response to its application on the same, the Reserve Bank of India (RBI) has advised that it "has not been considered".

Consequentially, Axis Bank revised its agreement in which the bank and its subsidiaries, i.e. Axis Capital Limited and Axis Securities Limited (together "Axis Entities"), have agreed to enter into revised agreements with Max Financial for the acquisition of up to 19.002 percent of the equity share capital of Max Life.

As per the agreement, Axis Bank's total stake in MLI will remain within the limits stipulated under the applicable laws and regulations, it said. Axis Bank will acquire up to 9.002 percent of the equity share capital of Max Life, and, Axis Capital Limited and Axis Securities Limited will together acquire up to 3 percent of the share capital of Max Life.

In addition, Axis Entities will have a right to acquire an additional stake of up to 7 percent of the equity share capital of Max Life, in one or more tranches, in accordance with existing laws and regulations.

"The Revised Agreements will supersede the previous agreements entered into between the parties. The transaction is subject to conditions precedent, including regulatory approvals," it added.