Reliance Capital Ltd. Canceled the Sale of its General Insurance Unit to Hero Fincorp

Reliance Capital Ltd. has canceled the sale of its Reliance General Insurance Ltd. to Hero Fincorp. Thus, leading Anil Ambani to look for alternatives as he tries to reduce debt.

According to the sources, the discussions for the sale of Reliance General Insurance Ltd. was at an advanced stage when it ended up after the investor had difficulty in procuring funds for the acquisition. At present, the Ambani’s group is searching for potential buyers and alternatives for the insurance asset.

This sale was considered crucial for the Ambani’s, as this deal would have reduced his group debts, which has reached up to Rs. 939 billion. Ambani in a conference call in June said that Reliance Group is committed to meeting all obligations commitment in the future with bare minimal debt.

A representative at Reliance Capital declined to remark, whereas a spokesperson for Hero FinCorp didn’t respond to phone calls and e-mails seeking comment on the same.

Hero Fincorp was in the advanced stages of talks to buy the Reliance General Insurance Ltd., at a valuation of about Rs. 60 billion, which ended up in dismal.