The Board of Directors of Reliance Industries on Monday approved the merger of Reliance Petroleum Ltd with the former. The swap ratio stands at 1:18 and each RPL shareholder stands to get 1 RIL share held.
Here are the highlights of the merger:
- RIL-RPL.
- RPL shareholders to get 1 Share of RIL for every 16 shares held
- RIL to cancel holding in RPL.
- RIL to extinguish 13% treasury stock
- Merger effective retrospectively from April 1, 2008.
- Merger ratio in favour of RPL
- RIL-RPL
- Outstanding shares: 157.4 cr shares
- Additional Shares to be 6.92 cr shares
- New share capital: 164.3 cr shares
- Dilution: 4.2% on fully diluted basis Post merger,
- RIL promoter holding to come down to 47% from 49%
- RIL-RPL
- Management sees merger to be tax neutral
- Merger P&L neutral for RIL
- Merger will help effective utilization of RPL’s $1.5bn operational cash flow
- SEZ benefits to continue for merged entity
- RIL-RPL
- FY10E net sales of merged entity seen at Rs 210,000cr
- FY10E net profit of merged entity seen at Rs 21,000cr
- Earnings increase higher than 4.4% stake dilution in FY10
- Merger 3-5% EPS accretive for RIL
- FY10E EPS of combined entity at Rs 127-135
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