After IDBI Bank and Federal Bank put fresh conditions, Max Life Insurance on Friday walked out of IDBI Federal Life Insurance stake sale, making Aditya Birla Sun Life Insurance as the sole bidder.

Analjit Singh promoted, Max Financial Services, on Friday said that Max Life Insurance has decided not to pursue the current acquisition opportunity and no longer considering any of the fund raising proposals.

IDBI Federal Life is a joint venture between IDBI Bank and Federal Bank, with Belgium-based Ageas SA/NV as the foreign partner. While IDBI Bank holds a 48% stake in the venture, Federal Bank and Belgian life insurer Ageas hold 26% each.

Earlier, Max Group had given IDBI Bank and Federal Bank time till today evening to accept its conditions.

The Max Group’s conditions include exclusivity of bancassurance tie-up and productivity guarantee from IDBI-Federal even after the merger, if any; auto renewal of bancassurance deal after 5 years if productivity milestones are delivered and indemnification if bancassurance tie-up jeopardized by change in control at IDBI Bank.

Yesterday, Analjit Singh, founder and Chairman, Max Group, told CNBC-TV18 that bidding for IDBI Federal Life Insurance without assurance is not making any sense.

Singh said Max Life Insurance had made aggressive bids for IDBI Federal Life Insurance. But the prerequisites we had asked, like performance guarantees etc, are unlikely to be given by IDBI Bank and Federal Bank.

IDBI Federal Life Insurance had seen interest from nine companies including Kotak Life, Max Life Insurance and Exide Life Insurance.

First Published:Jun 8, 2018 8:11 PM IST