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Nippon Life makes open offer to acquire 23% stake in RNAM for Rs 3,179 cr

Reliance Capital has already signed the binding definitive agreements with Nippon Life Insurance of Japan

Press Trust of India  |  New Delhi 

Reliance Capital has already signed the binding definitive agreements with Nippon Life Insurance of Japan.
Representative image

Friday announced an open offer to acquire nearly 22.49 per cent stake in (RNAM) for Rs 3,179 crore under a deal with which is exiting the mutual funds business.

would acquire up to 13.82 crore equity shares or about 22.49 per cent shares of (RNAM) at Rs 230 per share, according to the RNAM's draft filed with regulator Sebi on Friday.

The transaction is to be payable in cash for a total consideration of Rs 3,179.41 crore.

in May had announced to exit mutual fund business by selling its stake in Ltd (RNAM) to its joint venture partner Japan's

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

has already signed the binding definitive agreements with of Japan.

An open offer is a mandatory condition under Sebi guidelines for acquiring equity shares in a company (target) by the acquirer company (Nippon Life).

RNAM has already sold 4,82,83,405 equity shares through an offer for sale (OFS) undertaken on May 24 and May 27, 2019.

Upon completion of the acquisition of shares, Nippon Life will have the right to re-constitute the board of directors in RNAM including the right to appoint nominee directors or effect resignation of any director on the board.

RNAM had registered a net profit of Rs 486.09 crore in fiscal ended March 2019, up by 6.7 per cent from a year ago's Rs 455.74 crore.

Nippon Life of Japan will acquire the stake in RNAM through its internal accruals and it has earmarked Japanese Yen 58,000 million (equivalent to Rs 3,676.04 crore).

Stock of RNAM traded 0.16 per cent up at Rs 219.25 on BSE.

First Published: Fri, June 07 2019. 15:55 IST
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