23-05-2012, 03:09 PM
RELIANCE INDUSTRIES AND RELIANCE PETROLEUM BOARDS APPROVE MERGER
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Merger Benefits and Synergies:
The merger will unlock significant operational and financial synergies that exist between RIL
and RPL. It creates a platform for value-enhancing growth and reinforces RIL’s position as
an integrated global energy company.
The merger will enhance value for shareholders of both companies. The merger is EPS
accretive for RIL. Through this merger, RIL consolidates a world-class, complex refinery
with minimal residual project risk, while complementing RIL’s product range. There will be
further gains from reduced operating costs arising from synergies of a combined operation.
The merger will result in RIL:
• Operating two of the world’s largest, most complex refineries
• Owning 1.24 million barrels per day (MBPD) of crude processing capacity, the largest
refining capacity at any single location in the world
• Emerging as the world’s 5th largest producer of Polypropylene
Merger Details:
Under the terms of the proposed merger, RPL shareholders will receive 1 (one) share of RIL
for every 16 (sixteen) RPL shares held by them.
The appointed date of merger of RPL with RIL is 1st April 2008.
RIL will cancel its holding in RPL.
Reliance Industries Limited
Reliance Industries Limited (RIL) is India's largest private sector company on all major
financial parameters with a turnover of Rs. 1,39,269 crore (US$ 34.7 billion), cash profit of
Rs. 25,205 crore (US$ 6.3 billion), net profit (excluding exceptional income) of
Rs. 15,261 crore (US$ 3.8 billion) and net worth of Rs. 81,449 crore (US$ 20.3 billion) as of
March 31, 2008.
RIL is the first private sector company from India to feature in the Fortune Global 500 list of
'World's Largest Corporations' and ranks 103rd amongst the world's Top 200 companies in
terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune. RIL features in
the Forbes Global list of the world's 400 best big companies and in the FT Global 500 list of
the world's largest companies. RIL ranks amongst the 'Worlds 25 Most Innovative
Companies' as per a list compiled by the US financial publication-Business Week in
collaboration with the Boston Consulting Group.
Reliance Petroleum Limited
Reliance Petroleum Limited (RPL) is a subsidiary of Reliance Industries Limited. RPL is
setting up a greenfield petroleum refinery and polypropylene plant in a Special Economic
Zone at Jamnagar in Gujarat. With an annual crude processing capacity of 580,000 barrels
per stream day (BPSD), RPL will be the sixth largest refinery in the world.