homefinance NewsHero FinCorp in talks to buy Reliance General Insurance, says report

Hero FinCorp in talks to buy Reliance General Insurance, says report

As the Anil Ambani-owned firm tries to fix its balance sheet, the deal is expected to reduce the firm's debt by Rs 18,000 crore.

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By CNBC-TV18 May 30, 2019 8:55:59 AM IST (Published)

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Hero FinCorp in talks to buy Reliance General Insurance, says report
Talks between Hero FinCorp, the retail lending unit of Hero MotoCorp, and Reliance Capital are at a final stage for Hero FinCorp to buy Reliance General Insurance at Rs 6,000 crore valuation, The Economic Times reported, citing several people aware of the discussions.

The move could be part of the Anil Ambani-led company's plan to reduce debt by Rs 18,000 crore. RCap on last week said it will exit the mutual funds business by selling its stake in Reliance Nippon Life Asset Management Ltd (RNAM) to its joint venture partner Japan's Nippon Life Insurance.
ET noted that with the sale proceeds of general insurance and mutual fund businesses, the debt will be brought down by Rs 9,000 crore. Reliance Capital did not comment on the story.
People aware of the development told the paper that the due diligence process is ongoing. The report said that Reliance was earlier looking to divest 49 percent of RGI. However, the talks are now for a total sale.

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