India’s largest law firm Cyril Amarchand Mangaldas acted as the legal counsel for Mitsui Sumitomo Insurance Company, Limited (MSI) in relation to its share swap with Max Financial Services Limited (Max Financial), in a transaction valued at INR 4200 crores.

The General Corporate, Taxation and Competition Law practices of Cyril Amarchand Mangaldas advised MSI on the Transaction. The Firm provided strategic counsel and direction to MSI on its proposed subscription to shares of Max Financial in consideration for the transfer of certain shares held by MSI in Max Life Insurance Company Limited (Max Life) to Max Financial. Counsel included transaction documentation and related negotiations, as well as optimum strategies for tax, competition law and other regulatory matters.

The Transaction team was led by Nivedita Rao, Partner & Deputy Head – Corporate; Anand Jayachandran, Partner; with support from Aditya Prasad, Principal Associate; Rajalakshmi Natarajan, Senior Associate; and Sheetal S, Associate.

The Taxation  team was led by S. Patnaik, Partner & Head – Taxation; with support from Thangadurai VP, Senior Associate.

The Competition Law team was led by Avaantika Kakkar, Partner & Head – Competition; with support from Dhruv Rajain, Principal Associate; and Ruchi Verma, Associate.

As a part of the Transaction, MSI will subscribe to 75,458,088 equity shares of Max Financial at a price of INR 565.11 per share, for consideration other than cash, i.e. for transfer of 394,775,831 equity shares held by MSI in Max Life, at a price of INR 108.02 per share. At the conclusion of the transaction, MSI will acquire 21.87% of Max Financial’ s share capital and transfer 20.57% of Max Life’s share capital to Max Financial.

The value of the transaction, contingent upon relevant corporate and regulatory approvals, is INR 4200 crores.

The Transaction is expected to close after receipt of relevant regulatory approvals.