AMP-Sanmar not sold to Reliance Capital

Private insurer AMP-Sanmar Life Insurance company on Friday said it was in talks with "several companies" to sell the life insurance business and denied that it had already sold the venture to Reliance Capital.

"We are talking to several companies. No deal has been arrived as of now," Graham Meyer, managing director, AMP-Sanmar Life, told PTI in Chennai. Earlier in the day, a spokesperson of Anil Ambani controlled Reliance Capital said, "Active discussions are on and an announcement (on the acquisition) is expected shortly."

AMP-Sanmar, a joint venture between AMP, Australia and Chennai-based Sanmar Group, had become an acquisition target after the Australian partner announced its decision to exit the insurance venture in India early-June.

AMP holds 26 per cent stake in the joint venture while the remaining stake is being held by the Sanmar Group. Meyer said the insurance company was looking at all options, including the sale of the entire business to a new company.

He, however, refused to give a specific deadline to complete the sale process. AMP-Sanmar had recently hiked its capital to Rs 217 crore (Rs 2.17 billion). Reports had indicated that at least 4 to 5 existing life insurance players, including Aviva, were in talks to buy out the AMP-Sanmar's life insurance business.