Nippon’s pact for 26-percent stake in Reliance asset firm

March 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).

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