True North has proposed a partial exit from Niva Bupa Health Insurance through a secondary sale of shares to Bupa, True North’s joint venture partner in Niva Bupa).

True North has agreed to sell approximately 20% of its stake in Niva Bupa to Bupa for approximately INR 2,700 crore (approximately USD 325 million).

Completion of this sale is subject to the IRDAI’s approval and will result in Bupa becoming a majority shareholder in Niva Bupa (with Bupa’s shareholding increasing to approximately 63%) and transfer of control of Niva Bupa by True North to Bupa.

Khaitan & Co advised True North on this deal. The firm acted as the legal counsel to True North and advised it on structuring and regulatory aspects and drafting, negotiation and finalisation of the definitive agreements and will continue to advise it on the IRDAI approval process and other closing related matters.

The deal team was led by Niren Patel (Partner) and Saswat Subasit (Partner) and included Ravali Rayaprolu (Senior Associate).

The deal team was assisted by the following:

Transaction documentation: Kaushik Babu (Principal Associate).

IRDAI application and related advisory: Shreya Mukherjee (Partner), Shivani Devpura (Senior Associate), Aman Bagaria (Associate), Priyal Reddy (Associate) and Ishita Dhotre (Associate).

Niva Bupa, a joint venture between True North and Bupa, offers health insurance through more than 20 bank partners and has over 10,000 hospitals as part of its network, and it is currently India’s third largest health insurer with a market share of 8.4%.

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