Reliance Cap concludes asset arm stake sale to Nippon Life

Anil Dhirubhai Ambani Group (ADAG) firm Reliance Capital has concluded sale of its 26 per cent stake in its asset arm - Reliance Capital Asset Management - to Japan's Nippon Life for $290 million.

Nippon Life is a 123-year-old Fortune 100 company and manages over $600 billion in assets, among the largest in the world for any life insurer. The company is the 5th largest life insurer in the world and number one in Asia and Japan.

The sale has pushed Reliance Capital's value to $1.1 billion, in the largest such deal for an Indian asset management firm.

"The entire transaction proceeds of Rs 1.450 crore ($290 million) has been duly received from Nippon Life Insurance. The transaction pegs the total valuation of Reliance Capital at approximately Rs 5,600 crore ($1.1 billion)," the company said.



The board of Reliance Capital also announced the induction of Yutaka Ideguchi, Nippon Life's general manager for international planning and operations, as a non-executive director and nominee.

Reliance Capital had signed final agreements with Nippon Life to sell 26 per cent stake in Reliance Capital Asset Management earlier this year, subject to a series of regulatory approvals, all of which were granted recently.

Reliance Capital is the largest asset management company in India in terms of assets under management, with a portfolio of $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, after acquiring a 26 per cent stake for an aggregate value of $680 million, taking the valuation of the company to $2.6 billion.

With inputs from IANS