Nippon Life Insurance Co. said Thursday it will take a controlling stake in Reliance Nippon Life Asset Management by acquiring an additional 32% from its joint venture partner, Mumbai-based Reliance Capital.
The ¥72.8 billion acquisition will boost Nippon Life's current 42.875% stake to roughly 75%. Reliance Capital's stake will drop to about 10%. General shareholders of the listed joint venture hold the remaining stake in the firm.
In February, Reliance invited Nippon Life to bid for its stake, as the Mumbai-based group struggled to bring its debts under control. Earlier that month, the group had acknowledged that a local rating agency had downgraded its debt, citing Reliance's delays in disposing of non-core assets.
In a news release Thursday, Nippon Life expressed confidence in the joint venture's existing leadership team, led by Sundeep Sikka. Mr. Sikka couldn't immediately be reached for further comment.
Upon the expected closing of the purchase of the 32% stake from Reliance Capital in September of October, Reliance Nippon Life Asset Management will become a subsidiary of Nippon Life, the news release said.
The joint venture manages roughly 2.3 trillion rupees ($33 billion).
