Reliance Petroleum Scheme of Amalgamation

Reliance Petroleum Equity Shareholders & Creditors to approve Scheme of Amalgamation
Announcement:
Reliance Petroleum Ltd has informed BSE that by an Order made on March 05, 2009, the High Court of Gujarat at Ahmedabad has directed that, separate meeting of the Equity Shareholders, Secured Creditors (Class 1) (Class 2) and Unsecured Creditors of the Company be convened and held on April 09, 2009, for the purpose of considering and, if thought fit, approving with or without modification(s), the Scheme of Amalgamation of Reliance Petroleum Ltd with Reliance Industries Ltd.
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RIL to consider merger with RPL on March 2

The Reliance Industries Limited (RIL) board will meet on March 2 to consider merger with Reliance Petroleum Limited (RPL). The merger is effective retrospectively from April 1, 2001.
RIL, India's largest private sector enterprise, will issue about 34-crore additional equity shares of market value of approximately Rs 11,000 crore. Earlier, RIL had sold 4% stake in RPL taking its stake down to 71%.
The value of RPL's assets has been put at Rs 21,000 crore by industry consultants and ChemSystems, a firm providing support in the field of petroleum, chemical, and petrochemical industries. The company offers data, analysis, forecasts, training and planning tools to improve understanding and planning in the areas of energy and chemicals.

The merger would result in accretion of Rs 1,300 crore to RIL's net profit. Post-merger, the equity shareholding of the promoters in RIL would come down from the current 44% to 34%.

The merger would increase RIL's operational synergies and its cost efficiencies would optimise fiscal incentives, enhance financial strength and flexibility. It would also eliminate transfer pricing issues.