Reliance Capital - Signing of a Term Sheet between RCL, Reliance Capital Asset Management Ltd. (RCAM), a 100% subsidiary of RCL, & Eton Park Group
Reliance Capital Ltd (RCL) on December 12, 2007 announced a proposed investment by Eton Park, a leading global investor, in Reliance Capital Asset Management Ltd (RCAM), a 100% subsidiary of RCL.
Eton Park proposes to invest Rs 501 crores for an approximate 5% equity stake in RCAM, at an equity valuation of Rs 10,000 crores.
The proposed investment values RCAM at approx. 13% of its Assets under Management (AUM).
The RCAM valuation translates into a price of Rs 400 per share of Reliance Capital.
The proceeds of the transaction will be utilised by RCAM for its domestic and international expansion.
The transaction is subject to completion of definitive documentation and necessary approvals, if any, and is expected to close in January 2008.
Mr. Vikrant Gugnani, President and CEO, Reliance Capital Asset Management Ltd., said, “We welcome Eton Park as a respected long term institutional investor, and value this association, given Eton Park’s significant global presence in financial markets.”
About Eton Park:
Eton Park is a global, multi-disciplinary, team-oriented investment organization, dedicated to delivering superior risk-adjusted returns over a multi-year period. Eton Park currently manages over US$ 10 billion through its offices in New York, London and Hong Kong.
