Indian financial services unit Reliance Capital has secured shareholders’ approval for its initial 2.77% stake sale in the company to Japan’s Sumitomo Mitsui Trust Bank (SMTB) for INR3.71bn ($58.4m).
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Under the deal, the Japanese lender would buy an initial 2.77% strategic stake in Reliance Capital through preferential allotment, with a one-year lock-in period.
The allotment resolution was passed by 99.99% shareholders.
Sumitomo Mitsui will acquire the stake at INR530 ($8.6) per share representing a premium of over 11% to the stock price of relevant date of Reliance Capital.
Reliance Capital intends to set up a new bank in India, with support of SMTB as strategic partner.
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By GlobalDataThe companies will join forces to support their global clients, especially in areas of mergers and acquisitions in India and Japan, and support each other in distribution of their respective financial products through their networks.
Reliance Capital would support clients of SMTB in their supply chain financing and advisory needs in India, while SMTB would assist Reliance Group by offering various financial and other services in Japan and the Asia-Pacific region.
Sumitomo Mitsui Trust Group managed assets worth $682bn at the end of September 2014.
