Reliance Capital in May had announced to exit mutual fund business by selling its stake in Reliance Nippon Life Asset Management Ltd (RNAM) to its joint venture partner Japan's Nippon Life Insurance.
Both partners had 42.88 per cent stake each in the company, while the rest is with public shareholders.
Reliance Capital has already signed the binding definitive agreements with Nippon Life Insurance of Japan.
An open offer is a mandatory condition under Sebi guidelines for acquiring equity shares in a company (target) by the acquirer company (Nippon Life).
RNAM has already sold 4,82,83,405 equity shares through an offer for sale (OFS) undertaken on May 24 and May 27, 2019.
Upon completion of the acquisition of shares, Nippon Life will have the right to re-constitute the board of directors in RNAM including the right to appoint nominee directors or effect resignation of any director on the board.
RNAM had registered a net profit of Rs 486.09 crore in fiscal ended March 2019, up by 6.7 per cent from a year ago's Rs 455.74 crore.
Nippon Life of Japan will acquire the stake in RNAM through its internal accruals and it has earmarked Japanese Yen 58,000 million (equivalent to Rs 3,676.04 crore).
Stock of RNAM traded 0.16 per cent up at Rs 219.25 on BSE.
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