Reliance Capital said it has completed the sale of 26% stake in its asset management and mutual fund unit to Japanese financial services giant Nippon Life for Rs. 14.5 billion.
All the regulatory approvals have been received for the deal and the entire transaction proceeds of Rs. 14.5 bn have been received from Nippon Life Insurance, Reliance Capital said in a statement.
Following completion of the deal, Reliance Capital also announced the induction of Yutaka Ideguchi as a Non Executive Director and Nippon Life nominee on the board of Reliance Capital Asset Management (RCAM), the mutual fund and asset management arm of R-Cap.
Nippon Life is a 122 year Global Fortune 100 company and manages over $600 million (Rs. 30 trillion) in assets, amongst the largest total assets in the world for any life insurer. The company is the 7th largest life insurer in the world and the Number 1 private life insurer in Asia and Japan.
Reliance Capital—financial services arm of Anil Ambani-led Reliance Group—has interests in asset management and mutual fund; life and general insurance; commercial finance; equities and commodities broking; investment banking; wealth management services; distribution of financial products; exchanges; private equity; asset reconstruction; proprietary investments and other activities in financial services.
Early this month, the Employee's Provident Fund Organisation (EPFO) had approved Reliance Capital Asset Management plan to sell a 26% stake to Nippon Life Insurance Company, Japan. It also cleared the proposed change in ownership structure.
The Competition Commission of India, SEBI, Reserve Bank of India (RBI) and Pension Fund Regulatory & Development Authority (PFRDA) among others had also approved the deal.
RCAM is the largest and most profitable AMC in India, in terms of AUM, managing approximately Rs. 1.4 trillion (USD 28 billion), across mutual funds, government sponsored public funds, managed accounts and hedge funds.
Nippon Life Insurance is already a strategic partner in Reliance Life Insurance. The Japanese company acquired 26% stake in Reliance Life Insurance at an aggregate value of Rs. 30.62 billion (US$ 680 million).