Billionaire Mukesh Ambani’s Reliance Industries Ltd said on Friday that it has approved its shareholders and creditors to keep its oil-to-chemicals (O2C) business in a separate entity.
As directed by the National Company Law Tribunal (NCLT), the company held meetings of equity shareholders, lenders and unsecured creditors to consider a proposal to transfer the O2C business to a separate subsidiary – Reliance O2C Limited.
In the stock exchange filing, RIL stated that 99.99% of the shareholders, who attended the meeting held through video conferencing, voted in favor of the motion.
While 100% of secured creditors voted in favor of the resolution, 99.99% of unsecured creditors cast their vote in favor of the resolution.
The meeting was presided over by Justice (Retd) BN Srikrishna, former Supreme Court Judge.
“Plan of arrangement between Reliance Industries Limited (Transfer Company) and its shareholders and creditors and Reliance O2C Limited (Transfer Company) and its shareholders and creditors” Equity placed before shareholders and secured and unsecured creditors for consideration and approval Was, said the sawdust.
Stakeholders and lenders cast votes electronically.
In February, RIL announced its oil refining, fuel marketing and spinning-off of petrochemicals (oil-to-chemical), with a $ 25 billion loan from parents as an independent entity, Because it was seen to unlock value by settling. Bet for global investors like Saudi Aramco.
Reliance O2C Limited (O2C) carving to focus opportunities in the oil-to-chemicals value chain, improve efficiencies through a self-sufficient capital structure and a dedicated management team and attract a dedicated pool of investor capital Will enable, accordingly, a company to present.
The transfer of 51% stake in fuel retailing business in Jamnagar, Gujarat, petrochemical sites and O2C in several states will be on ‘slowdown sale basis’, subject to expected approval which is expected to come by September.
However, upstream oil and gas producing sectors such as KG-D6 and textile businesses will not form part of the new entity, where it aims to retain a significant majority stake.
The consideration for the transfer will be in the form of a long-term interest-loan of $ 25 billion to be issued by O2C to Reliance Industries Limited (RIL). RIL’s external debt is proposed to be with RIL only.
Once completed, RIL – a company founded by Dhirubhai Ambani in the late 1960s – would house only the upstream oil and gas exploration and production business, financial services, group treasury and legacy textile businesses, and the group’s holding company. Will act as
The retail business is conducted in Reliance Retail Ventures Limited and the telecom and digital ventures are vested in Jio Platform Limited.
The presentation stated that long-term loans issued by O2C to RIL as part of the restructuring would provide an efficient mechanism to cash generated from O2O to RIL.
RIL has been in ongoing discussions with the Saudi Arabian Oil Company (Saudi Aramco) to sell a minority 20% stake in its O2C businesses, which if successful should lead the company to destroy more.
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