Today in New Delhi, India
Oct 21, 2018-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

RIL Energy, REVL merger at swap ratio of 7.5:100

Anil Ambani-controlled RIL Energy has approved the merger of REVL with itself for which the share swap ratio has been fixed at 7.5:100.

business Updated: Jan 03, 2006 12:48 IST

A day after the merger approval of Reliance Capital with RCVL, Anil Ambani-controlled Reliance Energy Ltd on Tuesday approved the merger of Reliance Energy Ventures Ltd (REVL) with itself for which the share swap ratio has been fixed at 7.5:100.

The board of directors have approved the scheme of amalgamation, which entails a share exchange ratio of 7.5 share of Reliance Energy for every 100 share of Reliance Energy Ventures following the demerger scheme announced by Reliance group.

REL informed the Bombay Stock Exchange that the share exchange ratio is based on the number of shares of the company held by REVL, as it was valued by global management consultancy firm KPMG.

The shares of the company held by REVL will be cancelled under the proposed scheme of amalgamation.

The fully diluted equity capital of the company will remain at approximately Rs 228 crore, it said.

The proposed scheme comes as a bonanza for 23 lakh shareholders of Reliance Industries, who will be entitled to free shares of four Anil Ambani group companies. This will lead to enhancement of their value, elimination of dual listing of the company and RCVL.

The other benefit of the merger include elimination of potential "holding company" discount through REVL market price, increased liquidity for all the company's shareholders and wider domestic and international shareholder base for the company, it said.

The proposed scheme of amalgamation is, inter alia, subject to the approvals of the Board of REVL, the shareholders of the company and REVL, the stock exchanges, the Mumbai High Court and all other requisite permissions, sanctions and approvals.

First Published: Jan 03, 2006 12:48 IST