Ambani’s group to sell mutual fund to Nippon Life

Bloomberg

India’s debt-ridden Anil Ambani group will exit the asset management business by selling shares in its joint venture to Japanese partner Nippon Life Insurance Co, which will take a controlling stake in India’s fifth-biggest mutual fund.
Ambani’s Reliance Capital Ltd signed a binding definitive agreement to sell 32.12 percent of Reliance Nippon Life Asset Management Ltd for $649 million to the Japanese insurer, taking the latter’s shareholding to 75 percent, the companies said in statements. The partners currently hold 42.88 percent each in the company.
Reliance Capital will offer
the rest of its stake to other
investors to ensure the minimum free float requirement of 25 percent is met, it said.