New Delhi: Nippon Life Company Friday announced an open offer to acquire nearly 22.49 per cent stake in Reliance Nippon Life Asset Management (RNAM) for Rs 3,179 crore under a deal with Reliance Capital which is exiting the mutual funds business. Nippon Life Company would acquire up to 13.82 crore equity shares or about 22.49 per cent shares of Reliance Nippon Life Asset Management (RNAM) at Rs 230 per share, according to the RNAM’s draft filed with regulator Sebi on Friday. Also Read – SC declines Oil Min request to stay sharing of documentsThe transaction is to be payable in cash for a total consideration of Rs 3,179.41 crore. Reliance Capital in May had announced to exit mutual fund business by selling its stake in Reliance Nippon Life Asset Management Ltd (RNAM) to its joint venture partner Japan’s Nippon Life Insurance. Both partners had 42.88 per cent stake each in the company, while the rest is with public shareholders. Reliance Capital has already signed the binding definitive agreements with Nippon Life Insurance of Japan. Also Read – World suffering ‘synchronized slowdown’, says new IMF chiefAn open offer is a mandatory condition under Sebi guidelines for acquiring equity shares in a company (target) by the acquirer company (Nippon Life). RNAM has already sold 4,82,83,405 equity shares through an offer for sale (OFS) undertaken on May 24 and May 27, 2019. Upon completion of the acquisition of shares, Nippon Life will have the right to re-constitute the board of directors in RNAM including the right to appoint nominee directors or effect resignation of any director on the board. RNAM had registered a net profit of Rs 486.09 crore in fiscal ended March 2019, up by 6.7 per cent from a year ago’s Rs 455.74 crore. Nippon Life of Japan will acquire the stake in RNAM through its internal accruals and it has earmarked Japanese Yen 58,000 million (equivalent to Rs 3,676.04 crore).