Shares of HDFC and Max Financial Services rose by 1.32% to 13.53% at 12:33 IST on plans to merge Max Life Insurance Company and Max Financial Services with HDFC Life.
Index heavyweight and housing finance major HDFC was up 1.32% at Rs 1217.10.
Max Financial Services was up 13.53% at Rs 486.70.
Meanwhile, the S&P BSE Sensex was up 84.91 points, or 0.32% at 26,610.37.
The board of Max Financial Services and HDFC Standard Life Insurance Company (HDFC Life), a material non-listed subsidiary of HDFC, have approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a proposal for a potential combination through a merger of Max Life Insurance Company and Max Financial Services with HDFC Life by way of a scheme of arrangement.
The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts / NCLT, and other third party approvals, as may be applicable. The regulatory statements were issued by Max Financial Services and HDFC separately during trading hours today, 17 June 2016.
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Max Life is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in insurance. Max Financial Services holds 68.01% equity in Max Life, while MSI holds 26%.
HDFC Standard Life Insurance Company (HDFC Life) is a partnership between HDFC, India's leading housing finance institution and Standard Life, a global long term investment savings player. Currently HDFC holds 61.63% and Standard Life (Mauritius Holdings) 2006 holds 35% of equity in HDFC Life, while the rest is held by others.
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