Sumitomo Mitsui Trust Bank, Japan's fourth largest, has entered into a strategic pact with Anil Ambani-led Reliance Capital and will also pick a small stake in the Indian financial services firm, it was announced Thursday.
The Japanese financial power house will be acquiring a 2.77-percent stake in Reliance Capital for Rs.371 crore by way of a preferential allotment, the companies said.
An issue price of Rs.530 per share for this represents a 11-percent premium over Reliance Capital's market price on the relevant date of agreement, the company said.
This apart, Sumitomo will also help Reliance to set up a commercial bank when the latter gets the relevant license from the Reserve Bank of India.
Reliance Capital already has a major partnership with another Japanese financial services company, Nippon Life, in the areas of insurance and asset management.
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Reliance will also assist Sumitomo in providing support for its global clients, notably in areas like mergers, acquisitions and funding opportunities in India.
--Indo- Asian News Service
ap/rd
