By IANS,
Mumbai : Reliance Capital, part of the Anil Ambani-led Reliance Group, Wednesday said it had received approval from the insurance regulator to sell a 26 percent stake in its life insurance arm to Japan’s Nippon Life Insurance.
Nippon Life Insurance will acquire the stake at an aggregate value of Rs.3,062 crore ($680 million).
“We have received in-principle approvals from Insurance Regulatory Development Authority (IRDA) for proposed stake sale in Reliance Life Insurance,” said a statement from the Indian financial services major.
“IRDA would be granting final approval for the proposed sale on receipt of Reserve Bank of India approval,” it added.
The transaction pegs the value of Reliance Life Insurance at about Rs.11,500 crore ($2.6 billion).
Reliance Capital and Nippon had recently also signed an agreement to pursue further partnerships to provide a host of financial services in India.
Nippon Life will be evaluating opportunities – including strategic partnership – across all Reliance Capital promoted financial businesses including asset management.