Due diligence almost complete for Max Life merger: HDFC Life
HDFC Standard Life Insurance on Sunday said the due-diligence process for its merger with Max Life Insurance and Max Financial Services was almost complete. It is proposed to create one of the largest private sector life insurers. Efforts would be made to avoid any job loss in both, it said. “The parties are evaluating the proposed arrangement,” HDFC Standard Life Managing Director Amitabh Chaudhry said.
HDFC Standard Life Insurance on Sunday said the due diligence process for its merger with Max Life Insurance and Max Financial Services is almost complete.
It is proposed to create one of the largest private sector life insurer. Efforts would be made to avoid any job loss in both, it said.
Last month, the board of HDFC Standard Life Insurance, Max Life Insurance and Max Financial Services approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance and Max Financial Services into HDFC Life by way of a scheme of arrangement.
"The parties are currently evaluating the proposed arrangement, which is subject to due diligence, valuation etc. Subject to the proposed arrangement being approved, our endeavour would be to retain employees from both the firms since the quality of talent on both sides is high," HDFC Standard Life Managing Director Amitabh Chaudhry said.
"In cases where there could be duplication of responsibilities, we would intend providing the right opportunities for selection across internal roles and functions. We believe there would be several such opportunities for employees as it is a growing industry," he added.
According to the proposed deal, there would be two schemes of amalgamation. First, Max Life would merge into Max Financials and then the merged entity would amalgamate into HDFC Life.
HDFC Life being the existing company would automatically get listed on stock exchanges as it would merge a listed entity with itself.
“The objective is to create a platform for growth and we believe it would create valuable proposition for all the stakeholders,” he said. The next step would include the respective boards to consider and approve the scheme of arrangement. Thereafter, necessary regulatory and court approvals would be sought. It will be a pure share swap deal and no cash would change hands.