Global investment bank Goldman Sachs is all set to purchase a 9.4% stake of Max India for Rs 540 crore.
Max India will issue fully and compulsorily convertible debentures (FCDs) of the face value of Rs 867 each to Goldman Sachs Equity Partners for an aggregate consideration of $115 million.
The sum of Rs 520 crore would be pumped into the life insurance firm Max New York life, with about Rs 200 crore for the new health insurance business, while Rs 150 crore is for the healthcare business.
Max India shares up 3.86% to Rs 232.70 in contrast with its net profit falling 83.2% to Rs 1.97 crore with 18.9% decline in sales to Rs 83 crore in Q2 September 2009 over Q2 September 2008.
Although Goldman Sachs will get a seat at the company's board, it will not have any affirmative rights. “They will only have information rights”, confirmed Max India’s Director, Corporate Development, Mohit Talwar.
Source: Stock Watch