Private equity company Bain Capital and Hero Corporate Services are considering acquiring a controlling stake in India-based Max Financial Services Ltd., The Economic Times reported.
Hero Corporate and Max Financial have reportedly entered exclusive negotiations, with the former looking to complete the transaction by early February at the latest.
The potential acquirers could buy a 28.3% stake and make an open offer to minority shareholders, which could lead to them beneficially owning 54.3% of Max Financial. Another option for Bain and Hero Corporate would be to buy a stake of just under 26%, so that the mandatory open offer does not trigger, before replacing Max Financial founder Analjit Singh as the promoter, according to the report.
Hero Corporate has also brought up the idea of a potential Max Financial transaction with Apax Partners LLP, but talks with Bain are more advanced, sources reportedly said.
Max Financial, Bain and Apax declined to comment to the news outlet, while Hero Corporate did not respond.