Nippon Life Insurance (NLI), a Japanese provider of life and non-life insurance products and services, has completed the purchase of an additional 9% stake in Reliance Capital Asset Management for an aggregate value of INR6.57bn (US$108m).
Following the acquisition, NLI’S stake in RCAM, a part of Reliance Capital, has increased to 35%.
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In 2012, NLI acquired 26% stake in Reliance Capital Asset Management at an aggregate value of INR14.5bn. Nippon Life will be increasing its stake in Reliance Capital Asset Management from the existing 26% to 49% in two or more tranches.
Subsequently, Nippon Life will have an option to increase its stake further by an additional 14% to reach 49%, in tranches.
The deal hikes the valuation of Reliance Capital to around $1.2bn.
Reliance Capital CEO Sam Ghosh said: "We believe their expanded role in the Company will accelerate our growth, reach and performance in India and also help us in our global presence."
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By GlobalDataReliance Capital Asset Management is an Indian asset management firm that manages equity and fixed income mutual funds. As of 30 September 2014, Reliance Capital has INR2.18trn (US$36bn) in assets under management.
