Reliance Capital today said it has completed the sale of 26% stake in its asset management and mutual fund unit to Japanese financial services giant Nippon Life for Rs 1,450 crore.
All the necessary regulatory approvals have been received for the deal and the entire transaction proceeds of Rs 1,450 crore ($290 million) have been received from Nippon Life Insurance, Reliance Capital (R-Cap) said in a statement.
Following completion of the deal, Reliance Capital (R-Cap) also announced the induction of Yutaka Ideguchi as a Non Executive Director and Nippon Life nominee on the board of Reliance Capital Asset Management (RCAM), the mutual fund and asset management arm of R-Cap.
Nippon Life manages over $600 billion (Rs 30 lakh crore) in assets - highest in the world for any life insurer.
R-Cap is the financial services arm of Anil Ambani-led Reliance Group and is present in businesses like asset management, mutual fund, insurance, brokerage and various other segments of the financial services sector.
Commenting on the development, R-Cap CEO Sam Ghosh said that it welcomes Nippon Life as its valued partner in the asset management business.
Welcoming Ideguchi on the RCAM board, Ghosh said, "His contribution and vast experience will certainly help us accelerate the growth of the company in India and overseas."
Ideguchi is the General Manager, International Planning and Operations Department of Nippon Life Insurance. He joined Nippon Life in 1986 and has held various senior positions within the company and serves as director in many overseas subsidiaries and affiliates of Nippon Life Insurance.
"I strongly believe that Reliance Group and Nippon Life will build closer and more cooperative relationship for long time to come," Ideguchi said in a statement.
The regulatory approval process for the deal got over with the final approval from the Employee Provident Fund Organisation (EPFO) recently.
The deal has also been been approved by the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI), Competition Commission of India (CCI), the Pension Fund Regulatory and Development Authority (PFRDA), Financial Services Authority (FSA) UK, Dubai International Financial Centre (DIFC), and the Monetary Authority of Singapore (MAS).
RCAM is India's largest and most profitable AMC and manages approximately Rs 1,40,000 crore ($28 billion), across mutual funds, government sponsored public funds, managed accounts and hedge funds.
Nippon Life is already a strategic partner in Reliance Life Insurance with a 26% stake, which it purchased for Rs 3,062 crore ($680 million).