Indian private equity firm True North has said it would sell around 20% of its stake in Niva Bupa Insurance to its UK-based partner Bupa for about INR27bn ($325m).
The sale will increase Bupa’s shareholding in Niva Bupa to approximately 63%, making it the majority shareholder of the business. True North will continue as a minority JV partner.
“The transaction involves primary fund infusion of around INR3bn by both the JV partners. Another INR8bn will be raised from external investors,” said Mr Divya Sehgal, a partner of True North. Post the primary infusion and subsequent dilution, True North would hold around 28% stake in the company through a special purpose vehicle (SPV), Mr Sehgal added. True North now holds little more than 60% of the SPV, with other investors holding the remainder.
“The time is right for Bupa to take a majority shareholding in the business to propel Niva Bupa to its next stage of growth… (which) could also include the public listing of the business,” True North said in a statement.
Niva Bupa, a joint venture between British United Provident Association (Bupa) and India’s True North, offers health insurance through more than 20 bank partners and has over 10,000 hospitals in its network.
True North became Niva Bupa’s majority stake owner in 2019, after Max India sold its 51% stake in then-called Max Bupa Health Insurance to the fund.
