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%.
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."
Reliance 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.