British insurer Bupa plans to raise stake in India joint venture
Monday, 5 January 2015 00:02
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MUMBAI (Reuters): British health insurance provider Bupa plans to raise its stake to 49% in an Indian joint venture with Max India Ltd, the companies said, in the first instance of a foreign company raising its holding in an Indian insurance venture after a rule change.
The Indian Government last month passed an executive order to raise the foreign holding cap in insurance joint ventures to 49% from 26%.
While the executive order has to be approved by Parliament, companies have said they would start talks with their foreign partners on stake increases.
Bupa owns 26% of Max Bupa Health Insurance, which is 74% owned by Max India Ltd. Bupa plans to increase its stake in Max Bupa to 49% after the executive order is approved by Parliament and will seek required regulatory approval for that, the companies said in a joint statement.
No financial terms were disclosed.
