Japanese financial giant Nippon Life Insurance will acquire an additional nine per cent stake in Anil Ambani’s Reliance Capital Asset Management (RCAM) for ₹657 crore, the two companies have said.
More tranchesThe deal is part of an agreement through which the Japan-based insurance major will increase its shareholding in RCAM (comprising mutual fund, offshore fund, pension fund, portfolio management) from the current 26 per cent to 49 per cent in two or more tranches.”
Regulatory approvals“The transaction is expected to be completed this financial year, subject to the receipt of regulatory approvals,” the companies said. “We look forward to strengthening this relationship and using the collective experience of the two corporations to the advantage of the two global economies,” said Yoshinobu Tsutsui, President, Nippon Life Insurance.
Besides asset management, the Anil Ambani group firm has interests in insurance, commercial finance, broking and asset reconstruction. The transaction pegged the total valuation of RCAM at approximately ₹7,300 crore. The Japanese company will be investing an aggregate value of ₹657 crore to acquire an additional stake of 9 per cent in RCAM in the first tranche, to reach a 35 per cent stake. Nippon, which manages assets worth $50 billion-500 billion, also has stake in Reliance Capital's insurance arm, Reliance Life Insurance.
Shares of Reliance Capital closed four per cent higher at ₹501 a share on the BSE on Wednesday.