24
May 2004, Mumbai:
Max
India Limited today announced its decision to
issue preferential shares to Warburg Pincus.
The issue approved by the board represents a
29% stake in the fully diluted equity base of
the Company. The planned investment, totaling
Rs. 200 crore is for 10 million equity shares
of Rs 10/- each at an issue price of Rs. 200
per share. With this investment, Max India joins
the select group of Indian companies in which
Warburg Pincus has made investments. The total
investment of Warburg Pincus in India is over
US$850 million.
Mr.
Analjit Singh, Chairman of the Max Group
said, "Raising additional capital at this
stage of build-out of our new service sector
businesses was a part of our long-term financial
plan to support our two capital intensive businesses
of life insurance and healthcare. Max has always
partnered with the best in class, such as now
with Warburg Pincus who are the highest pedigree
private equity investor internationally. Max
believes in service excellence and financial
strength and this partnership would therefore,
accelerate our growth plans in the life insurance
and healthcare provider sectors to emerge as
leaders in their respective areas. We welcome
Warburg Pincus to the Max family."
Speaking
on this occasion Mr. Dalip Pathak, Managing
Director, Warburg Pincus LLC said, "We
are delighted to be investing in Max India.
The life insurance and healthcare services sectors
have high growth potential and Max India's unrelenting
commitment to professionalism has positioned
it well for a leadership role in these sectors.
Our investment is evidence of our confidence
in the strong fundamentals of India's economy,
the company's growth potential and its superior
management team."
Mr.
B. Anantharaman, Group Finance Director, Max
India said, "Having completed the restructuring
of the Group, the Company has now fully tied
up the long term funding needs of its life insurance
and healthcare businesses." "The partnership
with Warburg Pincus further underscores the
strong value creation potential of Max India",
he added.
Max
New York Life Insurance Company, a joint venture
between New York Life, a Fortune 100 company
and Max India Limited brings innovative life
insurance solutions based on New York Life's
global experience of over 158 years and Max
India's in-depth understanding of the Indian
market. In recognition of Max New York Life's
high standards of service, it has become the
first life insurance company in India to be
awarded ISO 9001: 2000 certification. As of
March 2004, Max New York Life Insurance Company
has sold over 2.3 lakh policies, is having Rs.
11,238 crore as in-force sum assured and has
a pan India presence through 35 sales offices
in 27 cities.
Max
Healthcare is all set to become India's first
truly world-class, fully integrated healthcare
delivery system, offering within one model,
all 3 levels of care - Primary, Secondary and
Tertiary. The company plans to complete this
multi-location facilities model in National
Capital Region of Delhi, with a targeted investment
of Rs. 520 crore, substantially within 2004-05.
As
part of the final phase of its restructuring
exercise, Max India exited its Pharmaceuticals
and Medical Transcription businesses. This is
in line with the Company's strategic decision
to focus on its core businesses of life insurance
and healthcare. The Company continues to hold
a 10% stake in Hutchison Max Telecom, operating
cellular telephony services in the Mumbai circle.
About Warburg Pincus
Warburg
Pincus has been a leading private equity
investor since 1971. The firm currently has
approximately $14 billion under management,
including $4 billion available for investment
in a range of industries including business
services, energy, financial services and technologies,
healthcare and life sciences, information and
communication technology, media and real estate.
Warburg Pincus is an experienced partner to
entrepreneurs seeking to create and build durable
companies with sustainable value. The firm has
an active portfolio of about 125 companies.
Warburg
Pincus is the largest international private
equity investor in India with investments of
over US$ 800 million in the country. The firm's
key portfolio companies include Bharti Tele-Ventures,
Gujarat Ambuja, Moser Baer, Nicholas Piramal,
Rediff and WNS Global Services
About
Max India Limited
Max
India Limited is a multi-business corporate,
driven by the spirit of Enterprise, focused
on Knowledge, People and Service oriented businesses
of Healthcare and Life Insurance. Max also maintains
interests in Clinical Research, Telecom services
and Specialty Plastic Products businesses.
For further information contact :
Deep
Ghatak
Manager -Corporate Communications
Max India Limited
Max House
1, Dr Jha Marg
Okhla, New Delhi 110 020
Tele
# 2632 2776 (D) ; 2693 3610 extn. 192
Mobile # 98186 48323
Fax # 632 4126
E-mail : dghatak@maxindia.com
