Beleaguered Anil Ambani Group to Sell Mutual Fund to Nippon Life

ndia’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, Bloomberg News reported. Ambani’s Reliance Capital Ltd. signed a binding definitive agreement to sell 32.12% of Reliance Nippon Life Asset Management Ltd. for 45.2 billion rupees ($649 million) to the Japanese insurer, taking the latter’s shareholding to 75%, the companies said in statements on Thursday. The partners currently hold 42.88% 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% is met, it said. The deal with Nippon Life is critical for embattled tycoon Ambani as he tries to bolster the finances of his last stronghold, Reliance Capital. Read more