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Reliance Capital invites Nippon Life to buy its entire 42.88% stake in JV

Sources said the transaction could help clear around 40% of Reliance Capital's outstanding debt worth Rs 18,000 crore

Press Trust of India  |  New Delhi 

anil ambani
Reliance Group Chairman Anil Ambani. Photo: PTI

Capital (RCap) Thursday said it has invited to acquire its entire 42.88 per cent stake in Nippon Life Asset Management (RNAM).

Japan's already holds 42.88 per cent stake in RNAM.

"Capital has invited its partner, Nippon Life Insurance, to make an offer to acquire up to 42.88 per cent stake held by in Reliance Nippon Life Asset Management," Reliance Capital said in a regulatory filing.

The company said it would make further announcements at the appropriate time.

As per BSE data, as on December 31, 2018, Reliance Capital held 42.9 per cent stake in

Sources said the transaction could help clear around 40 per cent of Reliance Capital's outstanding debt worth Rs 18,000 crore.

The transaction price is likely to be at a significant premium to the current market price, as it would also involve control premium, they added.

The proposed share sale would also trigger the requirement of open offer to be made for 26 per cent stake in the company.

According to the sources, once the transaction goes through, the company would become the largest wholly foreign-owned mutual fund in

have been trying to monetise some of their assets and bring down the debt significantly.

The on Wednesday held Anil and two others guilty of contempt of court for violating its order by not paying dues of Rs 550 crore to Ericsson, and said they faced a three-month jail term if Rs 453 crore was not paid to in four weeks.

The apex court said and the others will have to purge contempt by paying Rs 453 crore to in four weeks.

First Published: Thu, February 21 2019. 16:10 IST