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Nippon Life Insurance ups stake in RNAM to 75 pc

ANI 

Life of said on Thursday it has signed binding definitive agreements with Capital to increase its stake in Life Asset Management (RNAM) to 75 per cent.

Both partners currently hold 42.88 per cent each in the company, while the rest is with public shareholders.

Capital will exit its entire RNAM shareholding to Life Insurance, and Offer For Sale to other financial investors to ensure the minimum free float requirement of 25 per cent is also met.

Nippon will make the mandatory open offer at Rs 230 per share, in accordance with the SEBI Takeover Regulations. The open offer price represents a premium of 15.5 per cent to the minimum 60-day price as determined under the SEBI Takeover Regulations.

"Nippon Life views its employees and the management team of the asset management led by as its joint partner in India," said Yutaka Ideguchi, and Managing of Nippon Life

"They have contributed significantly for the successful track record of over the years. As existing shareholders, we are very confident that the current management team will continue to take this journey forward which started many years back," he said in a statement.

Nippon Life had made initial investment in RNAM in 2012. The company will continue to run its operations without any change in structure and management.

"I am delighted that has chosen to increase its holding in the company. They have been very supportive shareholders and this transaction will ensure continuity in strategy," said Sundeep Sikka, of RNAM.

"I am confident that we will continue to benefit from Nippon Life's leading practices in and leverage its global network to significantly enhance capital inflows into India," he said.

Nippon Life's total investment in RNAM will be over Rs 7,800 crore and over Rs 5,000 crore in Reliance Co Ltd, cumulatively adding up to over Rs 12,800 crore, among the largest FDI investments into in the financial services sector.

Nippon Life Insurance, a 130-year old company, is one of the largest companies in and manages assets of over 700 billion dollars. Total assets managed by it are twice the size of Indian mutual funds industry.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 23 2019. 12:51 IST
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