The Hindu : Front Page : Mukesh gives up 12% sweat equity in Infocomm

Online edition of India's National Newspaper
Friday, Dec 24, 2004

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Front Page

Mukesh gives up 12% sweat equity in Infocomm

NEW DELHI, DEC. 23. In a counter-offensive against warring younger brother Anil, the Reliance Industries Chairman, Mukesh Ambani, today gave up Rs. 50 crore shares at face value in Reliance Infocomm, ahead of the crucial board meeting of the flagship company on December 27.

The surprise move in the midst of a bitter battle with Anil, who today stepped up pressure seeking ``full'' discussion on various issues including shareholding pattern in Infocomm, had been taken in the face of a ``sustained campaign'' against him on the issue, a Reliance Communication and Infrastructure Ltd release said late tonight.

``Mukesh Ambani has sought annulment of this transaction and his request has been accepted by the board of RCIL [the holding company of Reliance Infocomm],'' a spokesman said, adding that a detailed communication would be placed before the RIL Board meeting on December 27.

Decrying the campaign, the spokesman said Mr. Mukesh was never interested in personal wealth and, like his father, the late Dhirubhai, he had created national assets such as petrochemcial complexes in Patalganga and Hazira, the world's biggest grassroots refinery in Jamnagar. ``Now he is building up the biggest communication network in the world.''

The 12 per cent sweat equity, given up by Mr. Mukesh, is estimated at a value of about Rs. 5,000 crores going by the valuation of the Infocomm business done by RCIL through merchant bankers.

PTI

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