Home ECONOMY Japan’s Sumitomo Mitsui bank in strategic pact with Reliance Capital

Japan’s Sumitomo Mitsui bank in strategic pact with Reliance Capital

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Mumbai, Dec 25: Sumitomo Mitsui Trust Bank, Japan’s fourth largest, has entered into a strategic pact with Anil Ambani-led Reliance Capital and will also pick a small stake in the Indian financial services firm, it was announced Thursday.

Reliance-Capital

The Japanese financial power house will be acquiring a 2.77-percent stake in Reliance Capital for Rs.371 crore by way of a preferential allotment, the companies said.

An issue price of Rs.530 per share for this represents a 11-percent premium over Reliance Capital’s market price on the relevant date of agreement, the company said.

This apart, Sumitomo will also help Reliance to set up a commercial bank when the latter gets the relevant license from the Reserve Bank of India.

Reliance Capital already has a major partnership with another Japanese financial services company, Nippon Life, in the areas of insurance and asset management.

Reliance will also assist Sumitomo in providing support for its global clients, notably in areas like mergers, acquisitions and funding opportunities in India. (IANS)

 

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