Reliance Capital gets RBI nod for 26-% stake sale to Nippon Life
30 September 2011
Anil Dhirubhai Ambani Group's financial services arm Reliance Capital says it had received approval from the Reserve Bank of India (RBI) for its proposed 26 per cent stake sale in Reliance Life Insurance to Japan's Nippon Life.
The company had signed a definitive agreement for sale of 26 per cent stake in Reliance Life Insurance to Nippon Life Insurance for Rs3,062 crore earlier this year. The deal would be subject to regulatory approvals.
The proposed stake sale had already received in-principle clearance from the Insurance Regulatory Development Authority (IRDA). With the RBI clearance for the deal, IRDA would now grant final approval for completion of the transaction, according to Reliance Capital 's to the Bombay Stock Exchange.
Commenting on the development, Reliance Capital CEO Sam Ghosh said, the company was delighted to receive the RBI approval, which would bring it closer to conclusion of the transaction very shortly.
According to Nippon Life Insurance president Yoshinobu Tsutsui it was great news as the company moved closer to completing the transaction.
The transaction values Reliance Life Insurance at around Rs11,500 crore.