Nippon Life Insurance of Japan to acquire additional stake in Reliance Nippon Life Asset Management Ltd (RNAM) to raise its stake to 75 percent according to a stock exchange filing. Both partners of the Joint Venture currently hold 42.88 percent in the company. Reliance capital will sell its entire stake in the company to Nippon Life Insurance. Open offer to sell shares at Rs. 230 per share will be made, to comply with SEBI Takeover Regulations. The transaction will increase the stake of Nippon Life Insurance in Reliance Nippon Life Asset Management Ltd to 75 percent.
Nippon Life Insurance, a 130-year old company, is one of the largest life insurance companies in Japan, managing assets of over US$ 700 Billion. Nippon Life Insurance has revenues of over US$ 70 Billion and core operating profit of US$ 6.8 Billion. Nippon Life Insurance has the largest market share in Japan among private life insurance companies, employing over 70,000 employees and serving nearly 14 million customers worldwide.
Nippon Life Insurance had made initial investment in RNAM in 2012.Executive Director & CEO Sundeep Sikka, will continue to lead the company. The company will continue to run its operations as is without any change in structure and management. Post this transaction RNAM to become the largest foreign owned asset management company (AMC) in India.
“I am delighted that Nippon Life Insurance has chosen to increase its holding in the company. They have been very supportive shareholders and this transaction will ensure continuity in strategy. I am confident that we will continue to benefit from Nippon Life’s leading practices in risk management and leverage its global network to significantly enhance capital inflows into India,” said Sundeep Sikka, CEO and Executive Director, RNAM.