Japan's Nippon Life Insurance Co. is in talks to buy most of Reliance Capital Ltd.'s approximately 43% stake in Reliance Nippon Life Asset Management Ltd., the companies' asset management joint venture in India, The Nikkei reported May 17.
Nippon Life could spend roughly ¥70 billion to buy the stake, which would bring the Japanese insurer's stake in Reliance Nippon Life Asset Management to over 70%, according to the report. As of March 31, Nippon Life and Reliance Capital each held a 42.88% stake in the asset management joint venture, according to data available on the Bombay stock exchange.
Reliance Nippon Life Asset Management is India's fifth-largest asset manager, with 4.2 trillion Indian rupees in AUM, according to the report.
The report came as Reliance Capital plans to sell its stake in Reliance Nippon Life Asset Management, along with a nonlife insurance subsidiary, to repay its debts. The company's liabilities stood at 200 billion rupees at the end of March, according to the report.
As of May 17, US$1 was equivalent to ¥109.94 and 70.31 Indian rupees.