*Reliance Life Insurance Co. Ltd.* may sell 26% stake to Swiss Reinsurance Co. Ltd. for about Rs 700 Cr, valuing the life insurer at Rs Rs 2690 Cr. Reliance Life intends to use the funds for expansion.
Reliance Life Insurance - the insurance arm of Anil Ambani's *Reliance Capital* - is among the top three private sector insurers in India. While most of private sector insurers in India operate as JV with a foreign partner, Reliance Capital and Sahara are the only two players who own 100% stake in their life insurance ventures. * UBS Securities India Pvt. Ltd* and *Deutsche Bank AG* are the investment bankers advising Reliance Life on the deal; *Ernst and Young Pvt. Ltd* has been hired to conduct due diligence. Transaction Note Earlier in 2009, Reliance Life was in talks with *China Life* for divesting upto 15% stake, but the deal didnt go through. China Life is the largest insurer in China. Reliance Capital - the holding company of Reliance Life has been contemplating the public offer for over six months now and has requested the Union Government to allow it to launch the IPO before completion of the 10 year operation clause. The 6AA provision of the Insurance Act, specifies that Indian promoters having more than 26% shareholding shall after 10 years reduce it in some appropriate manner or within such period the central government may decide. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
