News: Two Anil firms chart merger schedule
(TT 24/03/2006) Mumbai - The Reliance Anil Dhirubhai Ambani Group today announced the time schedule to implement the proposed merger of Reliance Energy Ventures Ltd (REVL) with Reliance Energy Ltd and Reliance Capital Ventures Ltd (RCAPVL) with Reliance Capital Ltd (RCL).
According to the schedule, allotment and listing of shares of the respective resulting companies (after the scheme) formed by the merger of both REVL with REL and RCAPVL with RCL will be done from the week beginning July 17.
According to the group, while hearing at the high court on the petition to approve the schemes will start from the week beginning June 5, the filing of the court order with the Registrar of Companies is likely to be implemented by the week beginning June 12. This will be followed by the record date in the week beginning July 10.
Bombay High Court has directed the group to convene a meeting of shareholders of both RCAPVL and REVL on April 26 to approve the respective scheme of amalgamations. It added that the meeting of shareholders of RCL has been convened by the high court of Gujarat on April 25.
The scheme of amalgamation between these companies envisages a share swap ratio of five equity shares of RCL for 100 shares of RCAPVL. Similarly, the exchange ratio of 7.5 equity shares of REL for every 100 shares of REVL was fixed early in February. The Anil Ambani group has explained that the main rationale of the merger move is to eliminate dual listing of companies in the same businesses and also abolish potential holding company discount.
According to the settlement between the Ambani brothers, four entities were demerged from Reliance Industries Limited based on telecommunications, coal-based energy, financial services and gas-based energy businesses. Among them, REVL is the holding company for RIL shareholding in REL and RCAPVL is the holding company for its shareholding in RCL. The other two include Reliance Natural Resources Ltd and Reliance Communication Ventures Ltd.
According to the schedule, allotment and listing of shares of the respective resulting companies (after the scheme) formed by the merger of both REVL with REL and RCAPVL with RCL will be done from the week beginning July 17.
According to the group, while hearing at the high court on the petition to approve the schemes will start from the week beginning June 5, the filing of the court order with the Registrar of Companies is likely to be implemented by the week beginning June 12. This will be followed by the record date in the week beginning July 10.
Bombay High Court has directed the group to convene a meeting of shareholders of both RCAPVL and REVL on April 26 to approve the respective scheme of amalgamations. It added that the meeting of shareholders of RCL has been convened by the high court of Gujarat on April 25.
The scheme of amalgamation between these companies envisages a share swap ratio of five equity shares of RCL for 100 shares of RCAPVL. Similarly, the exchange ratio of 7.5 equity shares of REL for every 100 shares of REVL was fixed early in February. The Anil Ambani group has explained that the main rationale of the merger move is to eliminate dual listing of companies in the same businesses and also abolish potential holding company discount.
According to the settlement between the Ambani brothers, four entities were demerged from Reliance Industries Limited based on telecommunications, coal-based energy, financial services and gas-based energy businesses. Among them, REVL is the holding company for RIL shareholding in REL and RCAPVL is the holding company for its shareholding in RCL. The other two include Reliance Natural Resources Ltd and Reliance Communication Ventures Ltd.
posted by InCar Group Press Room at 10:26
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