The Reliance Industries Limited (RIL) board will meet on March 2 to consider merger with Reliance Petroleum Limited (RPL). The merger is effective retrospectively from April 1, 2001.
Highlights of the merger:
* Swap ratio of one RIL share for every 11 RPL shares
* Merger is effective retrospectively from April 1, 2001
* Industry consultants peg value of RPL’s assets at Rs 21,000 crore
* RIL to issue about 34 crore additional equity shares; market value of issue is Rs 11,000 crore approximately
* Merger to result in accretion of Rs 1,300 crore to RIL’s net profit
* Post-merger, equity shareholding of promoters in RIL to fall from 44% to 34%
* Merger to hike RIL’s operational synergies, cost efficiencies
* Merger to optimise fiscal incentives, enhance financial strength, flexibility
* The next day after the announcement means on march 4th, RIL fell 3% and RPL gained 1%.
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