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Nippon Life completes acquisition of additional 9% stake in Reliance Capital Asset Management

27 Feb 2015 Evaluate

Nippon Life Insurance (NLI), a Fortune 100 company and the seventh largest life insurer in the world, has completed acquisition of 9 per cent additional stake in Reliance Capital Asset Management (RCAM), a part of Reliance Capital. The entire transaction proceeds of Rs 657 crore ($108 million) for this additional 9 per cent stake has been duly received from NLI.

With this transaction NLI has increased its stake in Reliance Capital Asset Management from the existing 26 per cent to 35 per cent. Nippon Life Insurance has an option to increase its stake further in Reliance Capital Asset Management by acquiring upto 14 per cent additional stake, to reach 49 per cent, in tranches.

Reliance Capital is a systemically important non-deposit taking NBFC. The company is part of the Reliance group led by Anil Dhirubhai Ambani. It currently operates as the holding company for the group’s entities in the financial services sector.

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