Reliance Cap completes MF stake sale

Reliance Capital has completed sale of 26 stake in its asset management and MF unit to Nippon Life.

Reliance Capital today said it has completed sale of 26 per cent stake in its asset management and mutual fund unit to Japanese financial services giant Nippon Life for Rs 1,450 crore.

All the necessary regulatory approvals have been received for the deal and the entire transaction proceeds of Rs 1,450 crore USD 290 million have been received from Nippon Life Insurance,Reliance Capital R-Cap said in a statement.

Following completion of the deal,Reliance Capital R-Cap also announced induction of Yutaka Ideguchi as a Non Executive Director and Nippon Life nominee on the board of Reliance Capital Asset Management RCAM,the mutual fund and asset management arm of R-Cap.

Nippon Life manages over USD 600 billion Rs 30 lakh crore in assets8211;highest in the world for any life insurer.

R-Cap is financial services arm of Anil Ambani-led Reliance Group and is present in businesses like asset management,mutual fund,insurance,brokerage and various

other segments of the financial services sector.

Commenting on the development,R-Cap CEO Sam Ghosh said it welcomes Nippon Life as its valued partner in the asset management business.

Welcoming Ideguchi on the RCAM board,Ghosh said: 8220;His contribution and vast experience will certainly help us accelerate the growth of the company in India and overseas.8221;

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Ideguchi is the General Manager,International Planning and Operations Department of Nippon Life Insurance. He joined Nippon Life in 1986 and has held various senior positions within the company and serves as director in many overseas subsidiaries and affiliates of Nippon Life Insurance.

8220;I strongly believe that Reliance Group and Nippon Life will build closer and more cooperative relationship for long time to come,8221; Ideguchi said in a statement.

The regulatory approval process for the deal got over with the final approval from Employee Provident Fund Organisation EPFO recently.

The deal has also been been approved by the Securities and Exchange Board of India Sebi,Reserve Bank of India RBI,Competition Commission of India CCI,the Pension Fund Regulatory and Development Authority PFRDA,Financial

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Services Authority FSA UK,Dubai International Financial Centre DIFC,and the Monetary Authority of Singapore MAS.

RCAM is India8217;s largest and most profitable AMC and manages approximately Rs 1,40,000 crore USD 28 billion,across mutual funds,government sponsored public funds,managed accounts and hedge funds.

Nippon Life is already a strategic partner in Reliance Life Insurance with a 26 per cent stake,which it purchased for Rs 3,062 crore USD 680 million.