With the closure of open offer, Nippon Life Insurance stake in Reliance Nippon Life Asset Management (RNAM) has risen to 54 per cent.
The open offer was part of the stake sale process. Nippon Life floated open offer to acquire nearly 22.49 per cent stake in RNAM for Rs 3,179 crore under a deal with Reliance Capital which is exiting the mutual funds business.
The mandatory open offer tendering period was from July 23 to August 5, sources said, adding that approximately 11 per cent shares were tendered in the open offer.
Nippon Life paid Rs 230 per share in the open offer and the total pay-out was about Rs 1,500 crore and the company has now become the majority shareholder with 54 per cent stake in RNAM.
As per the share purchase agreement, Reliance Capital will completely exit from RNAM and Nippon shareholding in the asset management company will further increase to 75 per cent.
Various regulatory approvals including form the Competition Commission of India (CCI) are in place, and in the next couple of months Reliance Capital will exit the mutual fund business.
According to sources, the deal is expected to be completed next month and Nippon Life will continue to run its operations without any change in structure and management.
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