On Friday, Nippon Life would acquire up to 13.82 crore equity shares, or about 22.49 percent, of RNAM at Rs 230 apiece, according to the RNAM’s draft filed with the Securities and Exchange Board of India. The transaction is to be payable in cash for a total consideration of Rs 3,179.41 crore.
Reliance Capital had in May announced its plan to exit the mutual fund business by selling its stake in RNAM to its joint venture partner Japan’s Nippon Life Insurance.
Reliance Capital and Nippon Life had 42.88 percent stake each in the company, while the rest is with public shareholders. 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 reconstitute the board of directors in RNAM, including the right to appoint nominee directors or effect resignation of any director on the board. RNAM has already sold 4,82,83,405 equity shares through an offer for sale undertaken on May 24 and May 27.