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Nippon Life raises stake in Reliance Capital AMC to 49%

13 Oct 2015 Evaluate

Nippon Life Insurance (NLI) has signed definitive agreements to increase its stake in Reliance Capital Asset Management Company (AMC), a part of Reliance Capital. Nippon Life Insurance will be increasing its stake in Reliance Capital Asset Management from the existing 35 per cent to 49 per cent in tranches.

The Japanese company will be investing an aggregate value of Rs 1,196 crore to acquire an additional 14 per cent stake in Reliance Capital Asset Management, in tranches, to reach a 49 per cent stake. The transaction pegs Reliance Capital Asset Management’s valuation at Rs 8,542 crore, the highest valuation till date for any asset management company in the country.

This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals. Post approvals, Nippon Life Insurance would become the co-sponsor in Reliance Capital Asset Management. In line with the new shareholding structure, the name of the company will also be changed from Reliance Capital Asset Management to Reliance Nippon Life Asset Management.

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