Blackstone, Warburg vie for Max Fin stake
MUMBAI: Global private equity (PE) firms Blackstone Group LP and Warburg Pincus Llc are in separate talks to invest in Max Financial Services Ltd for a minority stake, two people close to the development said.
Max Financial Services, led by billionaire Analjit Singh, is raising money to finance a potential acquisition by its life insurance unit Max Life Insurance Co. Ltd.
Mails sent to Blackstone and Warburg Pincus were not answered till press time.
“Both PE funds have expressed interest in the investment but it is subject to Max Life making an acquisition for which funds will be needed,” said the first of the two people cited above, both of whom spoke on condition of anonymity.
On April 10, Max Financial had said its board has approved mobilisation of funds from KKR Capital Markets India Pvt. Ltd, TPG Global Llc and Standard Chartered Bank to finance an acquisition opportunity by Max Life. While the company did not disclose the amount it would raise, it had said the fundraise was well within the li mit approved by its board. Its board has approved f und raising through both equity and debt up to ₹5,000 crore for investment in the life insurance business.
on February 13 reported that Max Life is the front runner for IDBI Federal Life Insurance Co. Ltd, and is looking to pick a majority stake in the firm valued at around ₹6,000 crore. While IDBI Bank holds 48% stake in IDBI Federal Life, both Federal Bank and Belgian life insurer Ageas SA/NV hold 26% each.