NEW DELHI: Max India Ltd today said it has received shareholders’ approval for amalgamation of Max Life Insurance Company with Max Financial Services as also the demerger of insurance business for transfer to HDFC Standard Life Insurance Company.
The decision follows postal ballot result. The company passed an ordinary resolution to approve the process.
“The result of the aforesaid resolution was declared today …As more than 93 per cent votes were received in favor of the above resolution, it was declared that the aforesaid resolution was approved with requisite majority,” Max India said in a regulatory filing.
As per the approval of the shareholders to the composite scheme of amalgamation and arrangement, it said shareholders have approved amalgamation Max Life Insurance Company Ltd into and with Max Financial Services Ltd (the resultant entity being referred to as MergeCo).
Further, demerger of the undertaking pertaining to the insurance business from MergeCo and transfer of the same to HDFC Standard Life Insurance Company Ltd was approved.
In the third leg of the composite scheme, shareholders have approved amalgamation of the remaining MergeCo into and with the Company (Max India), in accordance with and on the terms and conditions as stated in the scheme, it said in the filing.
Mortgage lender HDFC Ltd’s board in August approved the merger of Max Life and Max Financial Services with its insurance arm HDFC Standard Life Insurance Company.
The total premium of the merged entity is expected to be nearly Rs 26,000 crore and assets under management will top Rs 1 lakh crore.
In the private life insurance space, only ICICI Prudential Life Insurance had reported AUM of Rs 1 lakh crore.
Post merger, HDFC’s shareholding in HDFC Standard Life would be 42.5 per cent and consequently the insurance firm would cease to be its subsidiary. (AGENCIES)
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