The Anil Ambani-led Reliance Group's financial services flagship company Reliance Capital on Thursday said it has invited its partner Nippon Life Insurance Company to make an open offer for its 42.88 per cent stake in Reliance Nippon Life Asset Management Ltd (RNAM).
It is said Reliance Capital can realise about Rs 7,000 crore out of this deal and it would be used to reduce its debt, industry sources said.
In a regulatory filing in the BSE, the Indian company said: "Reliance Capital Ltd has invited its partner, Nippon Life Insurance Co Ltd, to make an offer to acquire up to 42.88 per cent stake held by Reliance Capital in Reliance Nippon Life Asset Management Ltd (RNAM)."
Nippon Life Insurance Co Ltd already holds 42.88 per cent stake in RNAM, the statement said.
An open offer by Nippon Life Insurance will be triggered if the above transaction goes through.
While the RNAM scrip is changing hands at about Rs 187 per share, Reliance Group will be expecting a sizeable "control premium" for its stakes.
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The RNAM came out with an IPO at a price of about Rs 252 and the sale price now was expected to be more than that as it would include the "control premium".
--IANS
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