Nippon Life Raises Stake In Reliance Nippon AMC To 54%, Open Offer Closes
Nippin Life Insurance Co. has raised its stake in joint venture firm Reliance Nippon Life Asset Management Co. Ltd. to 54 percent by buying shares in an open offer that closed Wednesday.
The mandatory open offer tendering period was from July 23 to Aug. 5, sources said on Wednesday, adding that shares amounting to 11 percent stake in RNAM were tendered in the open offer.
Nippon Life paid Rs 230 for every RNAM share in the open offer. The total payout was about Rs 1,500 crore. The Japanese firm has now become a majority shareholder with 54 percent stake in the joint venture company.
According to the share purchase deal, Reliance Capital will completely exit RNAM and Nippon's shareholding in the mutual fund manager will increase to as much as 75 percent. Various regulatory approvals, including from the Competition Commission of India, are already in place for the deal.
The deal is expected to be completed next month. Nippon Life will continue to run RNAM without any changes in structure and management.
On Wednesday, RNAM shares fell 7.65 percent to Rs 233.15 apiece on the BSE while the benchmark Sensex shed 0.72 percent to end the day at 37,060.37 points.