Nippon Life open offer for RNAM
RNAM has already sold over 4.82 crore equity shares through offers for sale (OFS) on May 24 and May 27.
Mumbai: Japanese insurer Nippon Life has announced an open offer to acquire a 22.49 per cent stake in Reliance Nippon Life Asset Mana-gement (RNAM) for Rs 3,179 crore.
Nippon Life Company 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 market regulator Securi-ties and Exchange Board of India on Friday.
Reliance Capital had in May announced that it would exit the mutual fund business by selling its stake to joint venture partner Nippon Life Insurance.
Both partners had 42.88 per cent stake each in the company. Reliance Capital has already signed the binding definitive agreements with Nippon Life Insurance of Japan. Upon completion of the acquisition of shares, Nippon Life will have the right to re-constitute the board of RNAM.
An open offer is a mandatory condition under Sebi guidelines for acquiring equity shares in a company (target) by the acquirer company, in this case Nippon Life.
RNAM has already sold over 4.82 crore equity shares through offers for sale (OFS) on May 24 and May 27.
RNAM had reported a net profit of Rs 486.09 crore in fiscal ended March 2019, up by 6.7 per cent from a year-ago figure of Rs 455.74 crore.
Nippon Life 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).