Nippon Life to hike stake in RCAM

Nippon Life to hike stake in RCAM
Japan-based Nippon Life Insurance (NLI) has decided to acquire an additional 14 per cent stake in Reliance Capital Asset Management (RCAM) for Rs 1,196 crore ($184 million) valuing RCAM at nearly Rs 8,542 crore ($1.3 billion).

Following the transaction, Nippon Life Insurance will be increasing its stake in RCAM from the existing 35 per cent to 49 per cent in tranches. The boards of directors of both the companies — Nippon Life Insurance and Reliance Capital Asset Management — have approved the increase in the stake by the Japanese partner, subject to regulatory approvals.
The transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals.

Post approvals, Nippon Life Insurance would become the co-sponsor in Reliance Capital Asset Management. In line with the new shareholding structure, the name of the company’s name will also be changed from Reliance Capital Asset   Management to Reliance Nippon Life Asset Management, RCAM said.

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