Axis Bank on Monday said it has reduced the size of the stake it plans to buy in Max Life Insurance to 17 per cent from 29 per cent. The bank had originally planned to raise its stake in the insurer to 30 per cent for about Rs 1,590 crore. The stake reduction plan follows reports that the deal ran into a regulatory roadblock over certain clauses in the agreement.
Axis Bank already holds around 1 per cent in Max Life Insurance. The bank will now own 18 per cent stake in the insurance firm. “We would like to inform you that following recent developments, Axis Bank now proposes to acquire 17.002 per cent of the equity share capital of Max Life, resulting in total ownership of 18.0 per cent post the transaction,” the bank said in a stock exchange filing.
“The parties have executed the definitive agreements. Axis Bank and Max Life will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval. The transaction is subject to regulatory approvals,” the filing said.
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