Reliance Capital Ltd (RCAP) on Thursday said it has signed binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management Ltd (RNAM).
Mumbai:
Both partners currently hold 42.88 per cent each in the company, while the rest is held by public shareholders. Reliance Capital said pursuant to the agreements, Nippon Life will also make an open offer of RNAM to the public shareholders at Rs 230 per share, as per market regulations, and reach the maximum permissible promoter shareholding of 75 per cent for listed companies. The transaction price represents a premium of 15.5 per cent to the minimum 60-day price as specified under the Sebi Takeover Regulations.
Reliance Capital will get proceeds of about Rs 6,000 cr through sale of its shareholding to Nippon Life Insurance at Rs 230 a share, and the simultaneous Offer For Sale (OFS) to other financial investors.
“I am delighted that our long-standing and most valued partner, Nippon Life Insurance, is increasing its stake in RNAM to 75 pc. The monetisation of the RNAM stake is part of our value unlocking strategy,” Reliance Group Chairman Anil Ambani said.
In a statement here, Reliance Capital said it will receive approximately Rs 6,000 crore as sale consideration for its stakes in RNAM.
Both partners currently hold 42.88 per cent each in the company, while the rest is held by public shareholders. Reliance Capital said pursuant to the agreements, Nippon Life will also make an open offer of RNAM to the public shareholders at Rs 230 per share, as per market regulations, and reach the maximum permissible promoter shareholding of 75 per cent for listed companies. The transaction price represents a premium of 15.5 per cent to the minimum 60-day price as specified under the Sebi Takeover Regulations.
Reliance Capital will get proceeds of about Rs 6,000 cr through sale of its shareholding to Nippon Life Insurance at Rs 230 a share, and the simultaneous Offer For Sale (OFS) to other financial investors.
“I am delighted that our long-standing and most valued partner, Nippon Life Insurance, is increasing its stake in RNAM to 75 pc. The monetisation of the RNAM stake is part of our value unlocking strategy,” Reliance Group Chairman Anil Ambani said.