“The broad contours of the deal are being worked out. Nippon Life has given an in-principle approval for the deal,” said a source. Reliance Capital and Nippon Life couldn’t be reached for a comment.
“The strategic sale of the controlling stake in Reliance Nippon Life is expected to be at a significant premium to market,” said Reliance Capital. Reliance Capital and Nippon Life own 42.9 per cent each in Reliance Nippon Life, which is valued at Rs 11,918.7 crore. If Nippon Life buys Reliance Capital’s stake it will end up with 85.76 per cent stake. In addition, it will have to make a 26 per cent open offer to minority shareholders. Sources said the deal could be finalised in the first quarter of 2019-20.
Meanwhile, Reliance General Insurance is awaiting market regulator Sebi’s nod for its IPO. The company had re-filed its offer document on February 8 after a lapse of one-year for its previous approval. The IPO size is expected to be Rs 1,500-2,000 crore.
Reliance Capital said it was in advanced stage of monetising several valuable non-core investments. These include a strategic stake sale in Prime Focus and other media assets. According to December quarter shareholding data, group firm Reliance Mediaworks Financial Services held 35 per cent stake in Prime Focus, which is valued at Rs 2,000 crore.e.