Nippon Life to raise stake in Reliance Capital to 49 pct

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Mumbai | November 27, 2014 12:43 AM

Nippon Life Insurance of Japan will increase its stake in Reliance capital Asset Management, a part of Reliance capital...

Nippon Life Insurance of Japan will increase its stake in Reliance capital Asset Management, a part of Reliance capital, from 26% to 49 % in two or more tranches.

“We welcome Nippon’s decision to strengthen this partnership and acquire an additional stake in our asset management company. We believe the expanded role in the company will accelerate our growth, reach and performance,” said Reliance Capital CEO Sam Ghosh.

The proposal to increase stake has been approved by the boards of both the companies. The boards have also approved Nippon Life to invest Rs 657crore for the additional 9% stake in first tranche to reach 35%.

Nippon Life Insurance will have an option to increase stake by an additional 14% to reach 49% in tranches.

The transaction pegs Reliance Capital Asset Management’s valuation at Rs 7,300 crore, the highest till date for any asset management company in the country, said a statement released by the company.

“Our partnership with Reliance Group is an example of successful collaboration between two big corporations and countries. We look forward to strengthen this relationship,” said Nippon Life Insurance president Yoshinobu Tsutsui. This transaction will likely complete in the current fiscal, subject to regulatory approvals.

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