With the closure of its open offer, Nippon Life Insurance's stake in Reliance Nippon Life Asset Management has risen to 54 percent.
Shares of Reliance Capital plunged almost 14 percent to hit a multi-year low of Rs 34.60 in August 22 session amid reports that it is exiting the mutual funds (MF) business.
PTI reported that with the closure of open offer, Nippon Life Insurance's stake in Reliance Nippon Life Asset Management (RNAM) has risen to 54 percent.
The open offer was part of the stake sale process. Nippon Life floated the open offer to acquire a nearly 22.49 percent stake in RNAM for Rs 3,179 crore under a deal with Reliance Capital, which is exiting the mutual funds business.
Nippon Life paid Rs 230 per share in the open offer, and the total pay-out was about Rs 1,500 crore. The company has now become the majority shareholder with 54 percent stake in RNAM, the PTI report further said.
As per the share purchase agreement, Reliance Capital will completely exit RNAM, and Nippon's shareholding in the asset management company will increase to 75 percent.
The deal is expected to be completed next month, and Nippon Life will continue to run its operations without any change in structure and management, the PTI report said.Around 1330 hours, shares of Reliance Capital traded at Rs 35.25 apiece on BSE, down by Rs 4.75 or 11.88 percent. At the same time, shares of Reliance Nippon Life Asset Management were up by Rs 6.85, or 2.94 percent.The Great Diwali Discount!
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