Does Max Financial benefit more from the merger?
Apart from swap ratio, non-compete fee to Max Financial promoters, use of 'Max' brand name and payment of royalty seem to give edge to Max Life
The mega-merger in the life insurance segment between Max Life and HDFC Life has moved a step ahead, with both announcing the finer contours of the deal on Monday evening. The Street was expecting fireworks from both stocks on Tuesday but after some pressure, they were each down by a little over 1.5 per cent.
Part of the decline could be attributed to the rally in both between June and August 8 — HDFC up to 10 per cent and Max Financial (promoter of Max Life) up 50 per cent. Also, some analysts question the merger’s valuations. The shareholders of Max Financial Services will ...
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First Published: Tue, August 09 2016. 22:45 IST