Anil Ambani-led Reliance Capital has roped in Sumitomo Mitsui Trust Bank, Japan’s fourth largest, as a strategic partner and a minority investor, besides an assurance to get its support when India’s central bank issues it a commercial banking licence.
The Japanese financial powerhouse will be acquiring a 2.77-percent stake in Reliance Capital for Rs.371 crore by way of a preferential allotment, Reliance Capital said in a statement Thursday, adding that the issue price of Rs.530 per share represents a 11-percent premium.
The acquisition will have a one-year lock-in period.
This apart, Sumitomo will also help Reliance Capital to set up a commercial bank as a strategic partner when the latter gets a licence from the Reserve Bank of India. Reliance Capital in turn will advise Sumitomo’s global clients, notably on mergers and funding opportunities in India.
“We wholeheartedly welcome Sumitomo Mitsui Trust as our strategic partner in Reliance Capital,” Reliance Group chairman Anil Ambani said in a statement, announcing the signing of their major collaboration agreement.
“We believe Sumitomo Mitsui Trust will play an important role in the future of our company through their all-round support and long standing experience and will help accelerate our growth as we tap new opportunities and expand our existing businesses.”
