Ril-rpl Merger Approved By Respective Boards

[savramesh 37]

The Board of Directors of Reliance Industries and its refinery subsidiary RPL on Monday approved the merger of the two firms, creating one of the world's largest petrochemical entity and offered the shareholders of RPL one RIL share for every 16 shares held by them.

Both the companies in two separate filings said that the shareholders of RPL would receive one equity share of RIL for every 16 shares held.

The merger would create one of the world's top 50 companies on profitable basis and would make RIL one of the largest refiners of the world.

The appointed date of the merger is

1st April, 2008, and the "scheme shall be subject to approvals of shareholders and creditors and sanctions" of the Bombay High Court.

Source DD News (NZ-02/03)

[Sadikk 301]

and history repeats itself ..........

[KumaarShah 143]

The above merger has nothing to do with RCOM, please move this topic to the appropriate place.

[savramesh 37]

RPL to get SEZ benefits post merger

The much-awaited merger of India's two biggest refineries is now a done deal and that makes RIL, one of the biggest refineries in the world. But, in these tough times, would the size be detrimental in the company's success in the world map?

No one has ever seen Alok Agarwal, the Chief Financial Officer of Reliance before the media, explaining the reasons behind one of the most important strategic moves by the company. But now, reaching out to shareholders and a desire for bigger scale and size seems to be a reason why Mukesh Ambani is also on a Public Relations overdrive.

The bottom-line of the mega merger is—for every 16 shares of Reliance Petroleum the investors will get one share of the parent Reliance Industries. Meanwhile Reliance, despite the merger is only tenth in scale and size after global refinery majors like ExxonMobil, Shell, Sinopec, BP, and Conoco Philips in the top five. As the suspense over the swap ratio and the merger of RPL and RIL is now over, RIL now projects itself that it has arrived in the big league of crude refiners and it is this merged entity that will help it sail through the tough times.

Now, while the combined entity will definitely get the tax benefits of RPL's special economic zone status there are still some questions that investors may have no answer to.

For instance, how did the financials of RPL fare in the last quarter of this financial? This will not be known as the audited numbers will never come out and what was the real reason for Chevron’s exit at the same price at which they entered.

It seems Reliance was also reluctant in allowing Chevron’s access to their in house models of how the most complex crude will be refined by RPL. But Reliance is still open to strategic investors for now with 25 per cent of the world's complex crude refining capacity. Moreover, Mukesh Ambani should be more worried about who will buy his products in a recession hit world.

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