Reliance Industries ‘(RIL) board has approved the merger of Reliance Petroleum (RPL) with the compnay and set a share swap ratio of 16:1.
As per the swap ratio agreed by the boards, shareholders of RPL will get 1 share of RIL for every 16 shares held. Reliance Industries has also stated that it would buy US energy giant Chevron’s stake in Reliance Petroleum (RPL). The overseas major had picked up a 5% stake in RPL in April 2006 as part of an equity investment pact with RIL.
The agreement envisaged entering into crude supply and production offtake agreements, however, both parties have now jointly decided not to proceed with the agreements. The acquisition of 22.50 crore equity shares from Chevron will raise RIL’s stake in the refinery subsidiary to 75.38%.
The merger will be effective from April 1, 2008.