New Delhi: Max India Thursday said it has received shareholders' approval for corporate restructuring plan for the demerger of the company.
The High Court of Punjab and Haryana has issued an order, taking on record the shareholders' approval of Max India's Composite Scheme of Arrangement for the demerger of the company and granted liberty to file a second motion petition, Max India said in a statement.
The Court-convened meeting of the equity shareholders of Max India was held on July 4, 2015, in which 99.99 percent of the shareholders voted in favour of the scheme.
Max India board in January approved a corporate restructuring plan to vertically split the company through a demerger into three separate listed companies to provide sharper focus on each business.
Through a demerger, the group will have three separate business verticals -- Max Financial Services for life insurance; Max India Ltd for health care, health insurance & allied businesses; and Max Ventures and Industries Ltd for manufacturing activities.
Besides, Max's clinical research business will be divested to a Canadian company for USD 1.5 million.
Max India has already received approvals for its proposed corporate restructuring from the Securities and Exchange Board of India (SEBI), the two stock exchanges where it is listed - the Bombay Stock Exchange & the National Stock Exchange - as well as from the Competition Commission of India (CCI), it said.
Besides, it said, the entity that is already listed, the two additional companies resulting from the Scheme will immediately file for listing of the shares with the stock exchanges following the final approval.
The proposed restructuring is a significant strategic event and is being undertaken to provide investors specific and undiluted access to Max India's diverse lines of businesses, provide sharper focus to each underlying business and to unlock shareholder value.
