Merger of HDFC Life, Max Life

Mortgage lender HDFC today said it has informed insurance regulator IRDAI that the proposed merger of Max Life Insurance Company with HDFC Life is structural in nature.

IRDAI had expressed reservations about the deal structure in the proposed merger of the two entities. An application was filed on September 21, 2016, by Max Life and HDFC Life, seeking in-principle nod for the amalgamation scheme. “The structure that we proposed in the transaction is that a non-listed Max Life will first get merged with Max Financial Services which is a listed entity and then the combined entity will be finally merged with HDFC Life,” Keki Mistry, vice-chairman and chief executive of HDFC told reporters here.

“Once the merger takes place, we will keep the non-insurance business of Max Financial Services out of the insurance venture. It is in fact a structural change rather than an actual merger,” Mistry said on sidelines of a CII event.

He said HDFC’s lawyers have informed Irdai that the “whole structure is fine as there is no actual merger of the two entities. Now, Irdai says it will seek the advice of the Attorney General on the issue”.

Commenting on the interest rate scenario, he said, “there is scope for rates to fall by 25 basis points or more. But, I can’t tell you by when it will happen.”

On corporate governance, he said independent directors should be entitled to Esop for them to take genuine interest in the corporate governance of the boards they sit on.

Hindi:

हाउसिंग फाइनेंस के क्षेत्र से जुड़ी कंपनी HDFC ने भारतीय बीमा नियामक एवं विकास प्राधिकरण इरडा को आज सूचना दी कि Max Life इंश्योरेंस कंपनी और HDFC Life का प्रस्तावित विलय कंपनियों का स्वरूप बदलने वाला होगा।

इरडा की सैद्धांतिक मंजूरी के लिए इस विलय के संबंध में दोनों कंपनियों ने 21 सितंबर 2016 को एक आवेदन किया था। इस पर इरडा ने इस प्रस्तावित सौदे के ढांचे को लेकर कुछ आपत्तियां जताई थीं।

HDFC के उपाध्यक्ष एवं मुख्य कार्यकारी केकी मिस्त्री ने यहां भारतीय उद्योग परिसंघ CII के एक कार्यक्रम के बाद पत्रकारों से कहा कि प्रस्तावित विलय का ढांचा यह है कि पहले गैर-सूचीबद्ध मैक्स लाइफ का सूचीबद्ध कंपनी मैक्स फाइनेंशियल सर्विसेज विलय होगा और इसके बाद बनी एक कंपनी का विलय HDFC लाइफ में होगा।

 

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