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Sumitomo Mitsui Trust Bank of Japan today said that has completed acquisition of 2.77% strategic stake in Reliance Capital, financial services holding company promoted by Anil Ambani-led Reliance Group.
“We are confident of accelerating our growth and tap new opportunities with the help of SMTB’s long standing experience and support” said Sam Ghosh, CEO, Reliance Capital.
The entire proceeds of Rs 371 crore ($58.4 million) for the 2.77% stake has been received from Sumitomo Mitsui Trust Bank, stated Reliance Capital in a release.
Sumitomo Mitsui Trust Bank, Limited had agreed to acquire strategic stake in Reliance Capital, subject to regulatory and shareholders approvals, which have since been received. Sumitomo Mitsui Trust Bank has acquired the stake through preferential allotment, with a lock-in period of one year. The investment has been made at Rs 530 per share representing a premium of over 11% to the stock price of relevant date of Reliance Capital.
Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalisation and corporate loans) and Japan’s largest financial institution managing assets of $682 billion with assets under custody of $1.8 trillion as of September 30, 2014.
As part of the agreement, Reliance Capital intends to establish a new Bank in India, with support of Sumitomo Mitsui Trust Bank as strategic partner, as and when RBI’s policies permit formation of the same. Both companies will also collaborate in providing solutions for their clients, including inter alia in the area of M&A opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks.
Reliance Capital will also support clients of Sumitomo Mitsui Trust Bank in their supply chain financing and advisory needs in India. Sumitomo Mitsui Trust Bank will support Reliance Group across its various group companies by providing wide range of financial and other services in Japan and Asia-Pacific region.
