Reliance Capital has signed binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management Ltd (RNAM). Both partners currently hold 42.88% each in the company, while the rest is with public shareholders.
Pursuant to the agreements, Nippon Life will also make an open offer to the public shareholders of RNAM at Rs 230 per share, as required under SEBI regulations, and reach the maximum permissible promoter shareholding of 75% for listed companies. The transaction price represents a premium of 15.5% to the minimum 60-day price as specified under the SEBI Takeover Regulations.
Reliance Capital will receive proceeds of approximately Rs 6,000 crore (US $ 860 million) through sale of its shareholding to Nippon Life Insurance at Rs 230 a share, and the simultaneous Offer For Sale (OFS) to other financial investors.
The entire proceeds of approximately Rs 6,000 crore (US $ 860 million) will be utilized to reduce Reliance Capital’s outstanding debt by 33%.
Sundeep Sikka will continue as the CEO and there will be no change in management team and structure.
