Bupa’s India JV Niva Bupa Weighs Stake Sale at $2 Billion Valuation, Sources Say
Insurer working with an adviser for $100 million fundraise. PE fund True North bought Max Health’s stake in 2019.
(Bloomberg) -- An Indian general insurer backed by British United Provident Association Ltd. is considering selling a minority stake that could value the firm at around $2 billion, according to people familiar with the matter.
Niva Bupa Health Insurance Company Ltd., a joint venture between the UK insurer and Indian private equity fund True North, is working with an adviser on the potential stake sale, the people said. The sale could raise as much as $100 million, they said.
True North may consider selling some of its stake, the people said. A deal could also involve issuing new shares, one of the people said, asking not to be identified as the information is private.
Deliberations are at an early stage, details such as size and structure could change and the insurer could decide not to go ahead with the stake sale, the people said. Representatives for Bupa, Niva Bupa and True North declined to comment.
A deal would see the insurer join billionaire Uday Kotak’s Kotak Mahindra Bank Ltd. which is considering selling a minority stake in its own general insurance unit, Bloomberg News has reported.
Niva Bupa has a network of more than 9,100 hospitals and serves about 7 million people as of March 2021, according to its website. Founded as a joint venture between Bupa and Indian insurer Max India Ltd., Max sold its stake to True North in 2019, the website shows. The firm was rebranded as Niva Bupa two years later, and Bupa increased its stake to 44.75%, according to the UK insurer’s annual report.
Axis Bank Ltd. agreed to buy a 9.9% interest in Niva Bupa from True North in 2021 and invested about $12.5 million.
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