The two Anil Ambani group companies, Reliance Power Ltd (RPL) and Reliance Natural Resources Ltd (RNRL), said on Monday that shareholders have approved their merger, estimated to create a R50,000-crore entity (based on market capitalisation).
Shareholders of RPL and RNRL, at their respective meetings held on September 4, approved the composite scheme of arrangement between the two companies, the ADAG companies said in separate filings to the Bombay Stock Exchange.
As per the deal approved by the boards of the two companies on July 4, RNRL would merge with Reliance Power in an all-share deal, under which RNRL shareholders would get one share of Reliance Power for their every four shares .
After the deal, which was valued at about R7,150 crore at the time of announcement, RPL is estimated to have over 6 million shareholders.
The merger of RNRL will make RPL a direct beneficiary of the gas deal signed with Mukesh Ambani-led RIL. The deal had come within days of RNRL signing a revised gas supply deal with RIL for power projects, which are under the charge of RPL.
The combined entity would have a net worth of over R16,000 crore. The scheme will also facilitate gas supply under RNRL's Gas Supply Master Agreements with RIL to RPL.