Reliance Capital too in race for AMP

Reliance Capital is one of several bidders for AMP Sanmar Life Insurance Company. The joint venture partners, AMP and Sanmar group, are negotiating jointly to exit the company, but it need not necessarily result in a 100 per cent buyout of the company, said Graham Meyer, managing director.

"We would like to get it over with as soon as possible," said Meyer. He, however, added that it would be difficult to predict when negotiations would end, and a deal struck.

Earlier agency reports quoted a Reliance Capital spokesperson saying that active discussions are on with AMP Sanmar, and an announcement could be expected shortly.

The current negotiations followed AMP's decision to stay focused on its wealth management business in Australia and New Zealand, and keep its Asian interest centred in asset management. The Sanmar group, which has a 74 per cent stake in the life insurance company, decided to follow AMP out of the business.

Early this year, both partners took steps to support the business.

In February 2005, the partners pumped in another Rs 57.10 crore in to the life insurance company to take the total capital in the business to Rs 217.10 crore. In June, both of them announced their intention to exit.

AMP Sanmar has over 100 branches spread across the four southern states and parts of Gujarat and Maharashtra, and has covered over 2.25 lakh lives in the course of its operations.