Max Financial and HDFC Standard talk merger, stock jumps 14%
Due to the merger news, the stock of Max Financial Services was trading nearly 14% on the BSE.
The board of directors of Max Financial Services on Thursday gave an approval to evaluate a merger of Max Life Insurance Company and Max Financial Services into HDFC Standard Life Insurance Company.
“...the Board of Directors has approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company Limited and Max Financial Services Limited into HDFC Standard Life Insurance Company Limited by way of a scheme of arrangement,” the company said in a filing to BSE.
If the move fructifies, the merger will create one of the biggest private life insurer with market value of Rs 50,000 crore and having 12.4% of market share, second to Life Insurance Corporation of India (LIC) which dominates Rs 25 lakh crore industry with 70% share.
Due to the merger news, the stock of Max Financial Services was trading nearly 14% on the BSE.
At 12:23, the stock of Max Financial Services was trading up 13.70% or Rs 58.75 at Rs 487.45 on the exchange.
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