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Reliance Capital Ltd (RCAP) on Thursday said it has signed binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management Ltd (RNAM).
Reliance Capital, in a statement, said it will receive proceeds of about Rs. 6,000 crore through sale of its shareholding to Nippon Life Insurance at Rs 230 a share, and the simultaneous Offer For Sale (OFS) to other financial investors.
The entire proceeds of about Rs. 6,000 crorewill be utilised to reduce Reliance Capital’s outstanding debt by 33 per cent, it added.
Both partners currently hold 42.88 per cent each in RNAM, while the rest is with public shareholders.
"Pursuant to the agreements, Nippon Life will also make an open offer to the public shareholders of RNAM at Rs. 230 per share, as required under SEBI regulations, and reach the maximum permissible promoter shareholding of 75 per cent for listed companies.
"The transaction price represents a premium of 15.5 per cent to the minimum 60-day price as specified under the SEBI Takeover Regulations," as per a stock exchange filing.
Anil Ambani, Chairman, Reliance Group, said, “The monetisation of the RNAM stake is part of our value unlocking strategy. We expect this transaction, together with other deals underway, to substantially reduce RCAP’s debt by over 50 per cent in the current financial year.”
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