New Delhi, May 23 (Udaipur Kiran): As per the advice by JM Financial Limited, Reliance Capital is selling its stake in Reliance Nippon Life Asset Management Ltd.(RNAM) to its Japanese Partner Nippon Life Insurance. As result of this transaction, Nippon Life Insurance will increase its stake to 75 percent in RNAM and Reliance will exit from this joint venture of mutual funds.
As per agreement and SEBI regulations,the open offer is also required to be made to public shareholders of the RNAM by Nippon. To this effect, Reliance capital will receive total proceeds of 6000 crore rupees at Rs. 230 per share. These proceeds will be used to reduce outstanding debts of Reliance Capital by 33 percent.
It is noteworthy that Reliance Capital is planning to reduce its debt by 50% in this financial year and this is one step ahead in this process. Both the partners currently hold 42.88 percent in this JV.