RIL-RPL merge
The board members have decided the swap ratio at 1:16. It means that RPL shareholders would receive one RIL share for every 16 shares held in RPL. RIL has decided to extinguish its treasury stock. The merger would be effective from April 1, 2009.
MUKESH AMBANI led Reliance Industries Limited (RIL) and Reliance Petroleum Limited (RPL) were merged into one entity on Monday (March 2).
The board members have decided the swap ratio at 1:16. It means that RPL shareholders would receive one RIL share for every 16 shares held in RPL. RIL has decided to extinguish its treasury stock.
The merger ratio is slightly in favour of RPL and RIL. The merger would be effective from April 1, 2009.
While speaking to the media, Mukesh Ambani, the Reliance Industries chairman and managing director said, “The merger follows enduring philosophy of creating shareholder value.” He further added that the merger would be EPS accretive and RIL would issue 6.92 crore shares to RPL shareholders.
Alok Agarwal, the CFO of RIL said that the merger would unlock synergies in crude sourcing and product placement. He further added that the amalgamation would mitigate the holding of company discount.
Agarwal further remarked that the merger would lead to greater flexibility in operations planning as integrated energy companies have higher valuations as against standalone refiners. According to Agarwal, the gas assets and earnings potential would exceed 4.4 per cent equity dilution. He also said that promoter holding in RIL would come down to 47 per cent from 49 per cent.
Today, both the Reliance stocks opened in red at the Sensex.
While speaking to the media, Mukesh Ambani, the Reliance Industries chairman and managing director said, “The merger follows enduring philosophy of creating shareholder value.” He further added that the merger would be EPS accretive and RIL would issue 6.92 crore shares to RPL shareholders.
Alok Agarwal, the CFO of RIL said that the merger would unlock synergies in crude sourcing and product placement. He further added that the amalgamation would mitigate the holding of company discount.
Agarwal further remarked that the merger would lead to greater flexibility in operations planning as integrated energy companies have higher valuations as against standalone refiners. According to Agarwal, the gas assets and earnings potential would exceed 4.4 per cent equity dilution. He also said that promoter holding in RIL would come down to 47 per cent from 49 per cent.
Today, both the Reliance stocks opened in red at the Sensex.
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