True North to sell 20% of Niva Bupa Insurance for ₹2,700 crore

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True North to sell 20% of Niva Bupa Insurance for ₹2,700 crore

Private equity firm True North yesterday said it would sell about 20% of its Niva Bupa Insurance holding to its UK-based partner Bupa for about 2,700 crore.

The sale will increase Bupa's shareholding in Niva Bupa to 63%, making it the biggest shareholder of the company.

The news comes after media reports earlier this year said the company was mulling a minority stake sale at a $2-billion valuation.

Niva Bupa, a joint venture between British United Provident Association and True North, provides health insurance through more than 20 bank partners and has over 10,000 hospitals as part of its network.

True North will continue as a minority JV partner, but it is not immediately clear how much stake it will hold in the business after the sale.

True North said it was obligated to respond to any questions related to the incident.

Kotak Investment Banking is the exclusive financial advisor for True North and Niva Bupa and Rothschild & Co is the exclusive advisor to Bupa on the transaction, the statement said.

In 2019, when Max India sold 51% stake in then-called Max Bupa Health Insurance to the fund at an enterprise value of Rs 1,001 crore, True North became the majority stake owner of Niva Bupa.