NEW DELHI:
Analjit Singh, sponsor and founder shareholders of the $3-billion Max Group, is set be appointed as non-executive chairman of
Max Life Insurance Company, the flagship life insurance entity of the group and
Max India, the listed holding company that houses
healthcare, health insurance and senior living businesses of the group, two people familiar with the development told ET.
“The move is aimed at sending a strong message to domestic and overseas investors that as sponsors Analjit Singh remains committed to these entities and will continue to engage with all the stakeholders of these companies on a proactive basis,” one of the persons quoted above said.
Rahul Khosla, the current chairman of Max Life and Max India and president of the group, is expected to retire by March-end after completing his current term, sources said. An announcement to this effect is expected shortly.
Mohit Talwar, an old hand with the group, will be appointed as group vice chairman and will be the seniormost professional in the group. Currently, he is managing director of Max India and Max Financial Services and vice chairman of Max Ventures and Industries.
Max India’s spokesperson declined to comment till press-time Sunday.
After these appointments, Analjit Singh will become the non-executive chairman of all the major companies of Max Group. In July last year, he was appointed non-executive chairman of Max Financial Services, the listed entity that houses the life insurance business -- Max Life Insurance, the largest non-bank private life insurer in India, and contributes over two-thirds to Max Group’s revenues.
Max India is the listed holding company for Antara Senior Living and owns majority stake Max Bupa Health Insurance. In addition, it owns nearly 50% stake in Max Healthcare that is in the process of merger with Radiant KKR.
Singh is also the chairman of Max Ventures and Industries, the listed holding company for group real estate and packaging business. It also manages group investment in other companies.
“At the time when the group is in the midst of divesting some of the businesses, including healthcare and health insurance, the sponsor felt that it is important to join the board to give comfort to all the stakeholders,” said the person quoted above.
The group has already signed a definitive agreement with Radiant KKR for a two-way merger of its healthcare business that will eventually allow Max group to relinquish control while retaining a minority 7% stake.
“The decision to bring in a partner in healthcare business was a strategic one to rope in a large private equity firm with deep pockets as well as the requisite management skill in healthcare space to scale up the business,” Analjit Singh had said in December 2018, at the time of signing the transaction.
Max India is in advance discussions with private equity firm True North to divest its stake in Max Bupa Health Insurance, a 51:49 joint venture with UKbased Bupa, ET had reported earlier. “The deal, which is expected to be finalised by March 2019, is expected to fetch about Rs 1,000 crore to Max India. The proceeds from this transaction will help in funding the growth of Max India,” one of the persons quoted above said.