Sunday, July 31 2005 13:54 Hrs (IST) - World Time -

New Delhi: Making a dramatic foray into life insurance business, Anil Ambani's ADA Enterprises today (July 31, 2005) announced acquisition of Chennai-based AMP Sanmar for an undisclosed amount, a move that may involve investment of over Rs 400 crore.

Announcing the deal, a spokesperson of ADA group company Reliance Capital told sources in New Delhi that, "We signed a deal today for acquiring 100 per cent stake in AMP Sanmar" but did not disclose the money involved.

The acquisition by Reliance Capital subsidiary Reliance Life, presumed to be for about Rs 225 crore, is part of Anil Ambani's announcement last month to make Reliance Capital an integrated financial services company to rank among three top entities in next two years.

ICICI Prudential, HSBC, AVIVA and Birla Sunlife were understood to be other contenders for the foreign joint venture company in which Indian company Sanmar had 74 per cent equity while the Australian partner AMP had 26 per cent stake.

The transaction and process of acquisition is likely to be completed within a month for necessary clearances including that from Insurance Regulatory Development Authority (IRDA).