Bupa to acquire addtnl 23% stake in Max Bupa for Rs 191 cr

UK's Bupa will increase its stake in Indian health insurance venture Max Bupa by 23 percent to 49 percent for Rs 191 crore. Max Bupa is a 74:26 joint venture between Max India and Bupa. "Bupa will pay around Rs 191 cr to Max India in an all cash transaction, to increase its stake in Max Bupa from 26 per cent to 49 per cent," Max Bupa Health Insurance said in a statement.

Bupa, it said, has executed agreements to acquire an additional 23 per cent stake in Max Bupa, one of India's leading standalone health insurers. The UK health care group was the first foreign insurer to announce its intent to increase its stake to 49 per cent in its Indian health insurance subsidiary after the government relaxed FDI participation rules for insurance companies. "Since that announcement in January 2015, Bupa and Max India have been working to align their JV agreements with the Insurance Laws (Amendment) Bill 2015 for Indian-owned and controlled businesses," the statement said.

The new agreements will come into force after the requisite regulatory clearances have been secured from the Foreign Investment Promotion Board (FIPB) and the Insurance Regulatory and Development Authority of India (IRDAI). Launched in 2010, Max Bupa is the seventh largest private health insurer in India. It has more than two million customers across India.

Its local parent Max India is one of India's leading multi-business corporates and currently owns 74 per cent of Max Bupa. Its foreign parent Bupa is a UK-headquartered global healthcare group, which holds 26% stake in the company. After the deal, Max India's stake in the venture will come down to 51 per cent.