Canada's Intact Insurance and German insurer HDI-Gerling International Holdings have emerged as top contenders to buy 26% stake in the non-life insurance business of Reliance Capital, the Mint reported on Friday.
The deal could be valued around Rs 1,500 crore, the newspaper said, quoting two people with direct knowledge of the matter. UBS India has been appointed advisors to Reliance General, it said.
Reliance Capital, controlled by billionaire Anil Ambani, has been looking to sell minority stakes in its key businesses to cut the group's debt. Last year, its CEO said the company was in talks with potential partners to sell 26% stake in the general insurance business.
The prospective Canadian bidder is part of Toronto-based Intact Financial Corp , while HDI-Gerling is a unit of Germany's third-largest insurer, Talanx.
Media reports have also named Travelers Companies and Samsung Fire and Marine among potential buyers.
Earlier this year, Nippon Life Insurance agreed to pay USD 290 million for a 26% stake in Reliance Capital's asset management unit.
The Japanese company also owns 26% in Reliance's life insurance business, acquired last year for USD 680 million.
A Reliance Capital spokesman declined to comment. Officials at Intact and HDI-Gerling could not be reached outside regular business hours.
Rel Capital stock price
On November 27, 2015, Reliance Capital closed at Rs 432.60, down Rs 1.65, or 0.38 percent. The 52-week high of the share was Rs 550.00 and the 52-week low was Rs 250.80.
The company's trailing 12-month (TTM) EPS was at Rs 33.25 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 13.01. The latest book value of the company is Rs 498.06 per share. At current value, the price-to-book value of the company is 0.87.
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