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The board of Mukesh Ambani-owned Reliance Industries Limited (RIL) on Monday agreed to merge with its refinery subsidiary Reliance Petroleum Limited (RPL), making it one of the largest refiners in the world.
The merger takes effect from April 1, 2008, and the "scheme shall be subject to approvals of shareholders and creditors and sanctions" of the Bombay High Court.
The share swapping between RIL and RPL has been agreed at 1:16, i.e. RPL shareholders will get one RIL share in return of their 16 RPL shares.
RIL also gave nod to extinguishing Treasury Stock. The decision was taken at today’s meeting of RIL and RPL boards.
Earlier, RIL board had announced to buy 5% stake in Chevron Energy after the latter decide to quit RPL. RIL had bought 22.50 crore equity shares or five percent of RPL's equity from Chevron. This would raise its stake in the company to 75.38 percent.
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