Anil Ambani led the Capital Relief (RCAP) on Thursday said he invited Nippon Life Insurance to acquire its total stake of 42.88 percent in Reliance Nippon Life Asset Management (RNAM).
Japan’s Nippon Life Insurance already has a 42.88 percent stake in RNAM.
“Reliance Capital invited its partner, Nippon Life Insurance, to make an offer to acquire up to 42.88 percent of Reliance Capital’s stake in Reliance Nippon Life Asset Management,” Reliance Capital said in a regulatory document.
The company said it would make more announcements at the right time.
According to BSE data, as of December 31, 2018, Reliance Capital had a 42.9 percent interest in Reliance Nippon Life Asset Management.
The sources said the transaction could help liquidate about 40 percent of Reliance Capital’s outstanding debt worth Rs 18,000.
It is likely that the transaction price has a significant premium over the current market price, since it would also involve a control premium, they added.
The proposed sale of shares would also trigger the requirement for an open offer to be made for the company’s 26 percent stake.
According to the sources, once the transaction is carried out, the company would become the largest fully foreign-owned mutual fund in India.
Reliance Group companies led by Anil Ambani have been trying to monetize some of their assets and significantly reduce debt.
On Wednesday, the Supreme Court declared RCom president Anil Ambani and two other guilty parties in contempt of court for failing to pay Rs 550 crore to Ericsson, and said they face a three-month prison sentence if Rs 453 is not paid to Ericsson in four weeks.
The apex court said that Ambani and the others will have to purge contempt by paying Rs 453 crore to Ericsson in four weeks.