True North’s $74.1 Million Acquisition of a Majority stake in Max Bupa


AZB & Partners and Khaitan & Co acted as legal advisors to Max India and True North, respectively.

The Board of Max India approvedthe sale of its 51% stake in Max Bupa Health Insurance Company (Max Bupa), to the leading Private Equity firm True North.

The all cash transaction values Max Bupa at anenterprise value of Rs1001croreand is subject to requisite regulatory approvals. Bupa, the existing joint venture partner in Max Bupa, remains committed to the joint venture and will continue to play an active role in the company as before through its Board positions and knowledge exchange initiatives.

At the conclusion of the transaction,True North will nominate directors on Max Bupa’s Board, while Max India’snominated directors will step down. The use of the Max brand will be phased out over a period of two years and replaced with a suitable name. The Bupa brand name will continue as before.

True North (formerly known as India Value Fund Advisors) is an active investor in Indian assets. It has built deep knowledge and skills in the Indian market, investing in morethan 40 Indian businesses over the last 19 years through its 6investment funds with a combined corpus of over US$ 2.8 billion. Over the years, True North has made productiveinvestments across the financial services andhealthcare sector, to the tune of Rs. 5,700 crores.

The transaction will lead to a cash inflow of Rs 511crore for Max India. The company intends to utilize the proceeds to invest in both existing and new business opportunities which are currently under evaluation.

Khaitan & Co advised True North with a team including Niren Patel (Picture), Saswat Subasit, Aravind Venugopal, Yashashree Mahajan (M&A), Gargi Bohra, Mishti Vohra, Agranee Kapoor, Anumeha Karnatak, Tanvi Dabir, Divya M Gupta, Naman Kamdar (Due Diligence), Shailendra Bhandare and Sourav Dan (IP&IT).

Involved fees earner: Shailendra Bhandare – Khaitan & Co.; Niren Patel – Khaitan & Co.; Saswat Subasit – Khaitan & Co.; Aravind Venugopal – Khaitan & Co.;

Law Firms: Khaitan & Co.;

Clients: True North Enterprise Private Limited;

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Author: Michael Patrini