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India's HDFC Life revives IPO plan as Max Life deal struggles

Reuters  |  MUMBAI 

(Reuters) - India's Life Co Ltd said on Monday it had revived a planned initial public offering, as it struggles to get regulatory approval to buy smaller rival Max Life.

Indian mortgage lender Housing Development Finance Corp Ltd and its joint venture partner Britain's Life Plc plan to sale a combined maximum of 20 percent in Life, according to a regulatory filing.

Life agreed in August to take over smaller rival Max Life in an all-stock deal that would have created the nation's top private life insurer.

As part of the deal, Max Life was to be merged into its listed parent Max Financial Services , which in turn would have combined its life business with Life.

The deal, however, did not win approval from India's regulator. Both sides have previously said they remain committed to the deal and were evaluating various options.

On Monday, Life said if the parties are able to obtain approval from the regulator, the company and its main shareholders would be willing to re-evaluate a deal with Max Life in "due course".

"At the present time, no (deal) structure prior to an of Life has been identified which satisfies shareholders' requirements," it said.

Life also confirmed the statement.

IFR, a Thomson publication, earlier on Monday reported that Life has short-listed Credit Suisse and Morgan Stanley, Nomura and Haitong Securities for managing its planned IPO, with more banks set to be added this week.

Before it agreed to the Max Life deal, Life had planned to go public via an

Life's rival SBI Life Co Ltd, a unit of top lender State , on Monday filed for an initial public offering of shares that bankers have said could raise more than $1 billion.

(Reporting by Devidutta Tripathy; editing by Alexander Smith)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 17 2017. 23:38 IST