Max India set for mega corporate restructuring

To split into 3 separate listed cos; To divest clinical research business

The Board of Max India approved a Corporate Restructuring plan to vertically split the Company through a demerger, into three separate listed companies. The Board also approved divestment of its clinical research business.

Upon completion of the demerger, the existing company, Max India, is proposed to be renamed ' Max Financial Services' and will focus solely on the group's flagship life insurance activity, through its 72.1% shareholding in Max Life, making it the first Indian listed company exclusively focused on life insurance.

The second vertical is proposed to be named Max India, which will continue to manage investments in the high potential Health and Allied businesses, essentially comprising : - Max Healthcare, Max Bhupa, Antara Senior Living and supported by Corporate Management Services team. The Corporate Management Services team will manage a shared services centre, which will provide functional support to all 3 verticals.

The third vertical will house the investment activity in the group's manufacturing subsidiary, Max Speciality Films and will be named Max Ventures and Industries.

Max India has also initiated action for the divestment of 100% stake in clinical research business. Max Neeman entities in India and US are proposed to be divested to a Canadian Contract Research Organisation, JSS Medical Research Inc., for a consideration of USD 1.5 million, subject to successful completion of due diligence and signing of definitive agreements, expected by mid-February.

The Appointed date for demerger is 01 April 2015 and is expected to be completed within the next six to nine months.

The proposed demerger is subject to approval by Max India shareholders, its creditors and relevant regulatory authority.

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