Nippon Life becomes largest RNAM shareholder after Reliance Capital exit

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Updated: August 22, 2019 6:58:51 AM

As per the share purchase agreement, Reliance Capital, which has been monetising its assets to get through troubled times, will completely exit from RNAM and Nippon shareholding in the asset management company will further increase to 75%.

Nippon Life, RNAM shareholder, RNAM , Reliance Nippon Life Asset Management , industry news, Reliance Capital, The mandatory open offer tendering period was from July 23 to August 5, 2019.

Nippon Life Insurance, a Japanese financial firm, has become the largest shareholder in Reliance Nippon Life Asset Management (RNAM) after the closure of the mandatory open offer, the company announced on Wednesday.  Nippon Life becomes the single largest shareholder in RNAM at 54% from earlier 43%. It will continue to run its operations as is without any change in structure and management.

As per the share purchase agreement, Reliance Capital, which has been monetising its assets to get through troubled times, will completely exit from RNAM and Nippon shareholding in the asset management company will further increase to 75%.

The mandatory open offer tendering period was from July 23 to August 5, 2019. Almost 11% shares were tendered in the open offer for which Nippon Life paid Rs 230 per share. Total payout was approximately Rs 1,500 crore.

Various regulatory approvals, including the Competition Commission of India (CCI) and Securities Exchange Board of India (Sebi) are in place, and in the next couple of months, Reliance Capital will exit the mutual fund business.

The open offer was part of the stake sale process. Nippon Life floated open offer to acquire a nearly 22.49% stake in RNAM for Rs 3,179 crore under a deal with Reliance Capital which is exiting the mutual funds business.

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