Merger to create one of largest petrochemical firms: Ambani

Mumbai: The merger of Reliance Industries with Reliance Petroleum will enhance value for shareholders of both the companies and is a major step towards creating one of the largest petrochemical firms of the world, RIL chairman and managing director Mukesh Ambani said.
Commenting on the merger, Ambani said : "This merger follows Reliance Industries' philosophy of creating enduring value for all our shareholders. It is a significant step in our goal to be among the largest global corporations".
The board of directors of Reliance Industries and its refinery subsidiary RPL today approved the merger of the two firms, creating one of the world's largest petrochemical entity and offered the shareholders of RPL one RIL share for every 16 shares held by them.
Pursuant to the said merger, RIL's holding in RPL would be cancelled and RIL would issue 6.92 crore new shares thereby increasing its equity capital to Rs 1,643 crore.Besides, this would result in a 4.4 per cent increase in equity base from Rs 1,574 crore to Rs 1,643 crore. Accordingly, the promoter holding in RIL would reduce from 49 per cent to 47 per cent.
Upon the completion of the merger, RIL would have as many as 3,7 million shareholders.