HDFC, Max Financial Services nudge higher

Max Financial Services and HDFC rose 0.91% to 1.05% at 12:16 IST on BSE after Max Financial Services said its board will consider a proposed scheme of arrangement amongst the company, Max Life Insurance Company and HDFC Life Insurance Company.

HDFC (up 1.05% at Rs 1,354.50) and Max Financial Services (up 0.91% at Rs 556) edged higher.

Meanwhile, the S&P BSE Sensex was up 83.66 points or 0.3% at 28,162.01.

Max Financial Services (MFSL) in its board meeting scheduled today, 8 August 2016, for the purpose of announcing Q1 June 2016 results, will also consider the proposed scheme of arrangement amongst the company, Max Life Insurance Company (MLIC) and HDFC Life Insurance Company (HDFC Life) and consequently, including Max India (formerly Taurus Ventures) as a party to such scheme for certain commercial reasons.

It may be recalled that MFSL's board in its meeting held on 17 June 2016, approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of MLIC and MFSL into HDFC Life by way of a scheme of arrangement.

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 62% and Standard Life (Mauritius Holdings) 2006 holds 35% of equity in HDFC Life, while the rest is held by others.

MLIC is a joint venture between MFSL and Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in insurance. MFSL holds 68% equity in MLIC, while MSI holds 26%.

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