Anil Ambani promoted Reliance Natural Resources Ltd. (RNRL) and Reliance Power Ltd. will be merged. This was decided in a meeting of the boards of the two companies today. The all stock deal is pegged at over Rs. 50,000 cr. or $ 11 billion.
Shareholders of Reliance Power will get 4 shares of RNRL for every share of Reliance Power.
The exchange ratio is based on independent valuation by KPMG.
RNRL was born out of the demerger of Dhriubhai Ambani's Reliance empire five year ago. The purpose of creation of RNRL was for sourcing, supply and transportation of fuels, primarily natural gas.
As per the demerger scheme, RNRL was to source natural gas from Reliance Industries and trade it to ADAG power plants including the proposed mega 7,800-MW Dadri unit near here being set up by R-Power.
However, with the Supreme Court on May 7 upholding the government policy on pricing and utilisation of natural gas, RNRL almost had no role left in supply of gas to R-Power.
According to government's Gas Utilisation Policy, trading or profiteering from natural gas sales is not allowed – no company can buy the fuel from a producer and sell it to an end consumer like a power firm for a margin.
Read More On:beta.profit.ndtv.com
No comments:
Post a Comment