Nippon’s pact for 26-percent stake in Reliance asset firmMarch 22nd, 2012 - 7:57 pm ICT by IANS
Mumbai, March 22 (IANS) Nippon Life Insurance Company Thursday signed final agreements with Anil Ambani-led Reliance Capital to acquire a 26-percent stake in its asset management company for $290 million.
“The transaction pegs the total valuation of Reliance Capital Asset Management Company at Rs.5,600 crore ($1.1 billion),” the company said after the pact was inked by Reliance Capital chief executive Sam Ghosh and Nippon Life’s chief investment officer Takeshi Furuichi.
The transaction is subject to necessary regulatory approvals.
Nippon Life is a 122-year Fortune 100 company and manages over $600 billion in assets - among the largest total assets in the world for any life insurer. The company is the 7th largest life insurer globally and the largest private insurer in Asia and Japan.
“We look forward to having Nippon Life Insurance as our strategic partners in the mutual fund business. We will be filing our application with the regulators for approval and hope to conclude this transaction soon,” Ghosh said.
Reliance Capital, the largest asset management company in India in terms, has under it Rs.1,40,000 crore ($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 percent stake in Reliance Life at an aggregate value of Rs.3,062 crore ($680 million). The transaction pegged the total valuation of Reliance Life Insurance at Rs.11,500 crore ($2.6 billion).
- Reliance Capital gets regulator's nod to sell stakes to Nippon Life - Jun 13, 2012
- Reliance Cap concludes stake sale to Nippon Life for $290 mn - Aug 17, 2012
- Reliance Capital pact with Nippon in areas beyond insurance - Sep 01, 2011
- Reliance Capital to consider special dividend: Ambani - Sep 04, 2012
- Reliance Life gets Nippon on board for $680 million - Mar 14, 2011
- Reliance Life concludes 26 percent stake sale to Nippon for $680mn - Oct 09, 2011
- Nippon Life to invest $290 mn in Reliance Capital arm (Lead) - Jan 19, 2012
- Regulator's nod for Reliance Capital's 26 percent stake sale to Nippon - Sep 14, 2011
- Reliance Capital to pay special dividend of 50 percent - Sep 10, 2012
- Reliance Life gets central bank nod for stake sale to Nippon - Sep 30, 2011
- Nippon Life to buy into Reliance Group arm - Jan 19, 2012
- Reliance Life looks to next big steps in ties with Nippon - Oct 09, 2011
- Employees Provident Fund approves Reliance-Nippon stake deal - Aug 07, 2012
- Anil Ambani talks of unlocking shareholder value (Roundup) - Sep 27, 2011
- Reliance Mutual looking for foreign partners to go global - Oct 02, 2011
Tags: aggregate value, ambani, asset management company, capital asset management, capital asset management company, chief investment officer, fortune 100 company, ghosh, hedge funds, japanese company, life insurance company, life insurer, mutual fund business, necessary regulatory approvals, nippon life insurance company, private insurer, reliance capital, strategic partner, strategic partners, takeshi