Nippon Life insurance to acquire additional stake in Reliance Nippon Life Asset Management Ltd.
Nippon Life Insurance of Japan to acquire additional stake
in Reliance Nippon Life Asset Management Ltd (RNAM) to raise its stake to 75
percent according to a stock exchange filing. Both partners of the Joint
Venture currently hold 42.88 percent in the company. Reliance capital will sell
its entire stake in the company to Nippon Life Insurance. Open offer to sell
shares at Rs. 230 per share will be made, to comply with SEBI Takeover
Regulations. The transaction will increase the stake of Nippon Life Insurance
in Reliance Nippon Life Asset Management Ltd to 75 percent.
Nippon Life Insurance, a 130-year old company, is one of the
largest life insurance companies in Japan, managing assets of over US$ 700 Billion.
Nippon Life Insurance has revenues of over US$ 70 Billion and core operating
profit of US$ 6.8 Billion. Nippon Life Insurance has the largest market share
in Japan among private life insurance companies, employing over 70,000
employees and serving nearly 14 million customers worldwide.
Nippon Life Insurance had made initial investment in RNAM in
2012. Executive Director & CEO
Sundeep Sikka, will continue to lead the company. The company will continue to
run its operations as is without any change in structure and management. Post
this transaction RNAM to become the largest foreign owned asset management
company (AMC) in India.
“I am delighted that Nippon Life Insurance has chosen to
increase its holding in the company. They have been very supportive
shareholders and this transaction will ensure continuity in strategy. I am
confident that we will continue to benefit from Nippon Life’s leading practices
in risk management and leverage its global network to significantly enhance
capital inflows into India,” said Sundeep Sikka, CEO and Executive Director,
RNAM.
