Japan’s Nippon Life Insurance (NLI), the seventh largest life insurer in the world, has completed the acquisition of an additional 9 per cent stake in Reliance Capital Asset Management (RCAM).
Following the buy, the Japanese company’s stake in RCAM, a part of Reliance Capital, has increased to 35 per cent. This transaction values RCAM at about Rs 7,300 crore ($1.2 billion), the company said in a regulatory filing.
NLI has also received Rs 657 crore ($108 million) as proceeds for the additional 9 per cent stake, it added.
“We believe their (NLI) expanded role in the company will accelerate our growth, reach and performance in India and also help us in our global presence,” said Sam Ghosh, CEO of Reliance Capital.
NLI had agreed to increase its stake in RCAN from 26 per cent to 49 per cent in two or more tranches, subject the regulatory approvals. The company has got regulatory approvals for the same.
NLI has an option to increase its stake further in RCAM by acquiring up to 14 per cent additional stake, to reach 49 per cent, in tranches.
RCAM is the largest asset manager in India with the company managing Rs 2,29,060 crore ($36.9 billion) as on December 31, 2014, across mutual funds, pension funds, managed accounts and offshore funds.