Reliance Capital to sell stake to Nippon Life Insurance
ADAG groups, Reliance Nippon made a public announcement that Nippon Life Insurance of Japan has signed binding definitive agreements with Reliance Capital Limited to increase its stake in the company.
The Japan-based life insurance firm, Nippon Life Insurance (NLI) announced that in the signed agreement, to increase stake up to 75 per cent. Both partners currently hold 42.88 per cent each in the company and rest is with the public shareholders. Reliance Capital is set to exit entire RNAM shareholding to Nippon Life Insurance and ‘Offer For Sale’ to other financial investors to ensure the minimum free float requirement of 25 per cent is also met. NLI will make the mandatory open offer at Rs. 230 per share, in accordance with the SEBI Takeover Regulations. The open offer price represents a premium of 15.5 per cent to the minimum 60-day price as determined under the SEBI Takeover Regulations.
Reliance Nippon is the asset manager of Reliance Mutual funds schemes. It is also engaged in Portfolio Management Services (PMS) and advisory services.
The stock of Reliance Capital ended Thursday's trading session higher by 7 per cent at Rs. 233.75 on BSE. The benchmark index Sensex closed with losses of around 300 points after touching levels of 40000.