Mumbai: Reliance Capital today signed a deal for exploring stake sale in its mutual fund and other businesses to the Japanese major Nippon Life, to which it has already sold 26% equity in the life insurance venture.
A Memorandum of Understanding (MoU) was signed today in Tokyo between Reliance Capital Chairman Anil Ambani and Nippon Life President Yoshinobu Tsutsui for reinforcement of the business relationship between the two companies.
Earlier this year, Nippon Life had signed a definitive agreement for obtaining 26 per cent stake in Reliance Life Insurance for Rs 3,062 crore. The deal is presently awaiting regulatory and other approvals.
Anil Ambani said after signing the MoU, “Nippon Life has already agreed to be our partner in the Life Insurance business, and we see great potential to work together across our other financial services businesses.”
“We are delighted to have an opportunity to expand our relationship with Reliance, one of the most respected business groups in India,” said Nippon Life’s Yoshinobu Tsutsui.
Nippon Life is a 122-year-old Fortune 100 company, ranked as 7th largest life insurer in the world and the single-largest private life insurer in Asia and Japan. Its deal with Reliance Life attached the total valuation of the Indian insurer at about Rs 11,500 crore ($ 2.6 bn).