The Hindu : Business : RIL to exercise option in Reliance Infocomm

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Wednesday, Jun 29, 2005

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Business

RIL to exercise option in Reliance Infocomm

Special Correspondent

To convert preference shares into equity shares

MUMBAI: The board of Reliance Industries on Tuesday decided to exercise the option to convert the preference shares of Reliance Infocomm into fully paid equity shares of the face value of Re. 1 each at a price of Rs. 32 per share.

Reliance Industries Limited has an investment of Rs. 8,100 crore represented by 162 crore preference shares in Reliance Infocomm.

Reliance Infocomm will now allot 287.76 crore of shares of the face value of Re. 1 each fully paid to Reliance Industries for a value of Rs. 9,208.27 crore, including the accrued premium on preference shares.

This allotment will increase the holding of Reliance Industries in Reliance Infocomm to 65.9 per cent.

In the recent settlement in the Reliance group, Mukesh Ambani gave up his control on Reliance Infocomm for his younger brother Anil Ambani.

To buy shares in REL

PTI adds from New Delhi:

Ahead of demerger of Reliance Industries as part of the settlement between the Ambani brothers, RIL will buy from its subsidiary, Reliance Industrial Investments and Holdings (RIIHL), 6.97 per cent equity in Reliance Energy, a company that has gone to younger sibling Anil.

RIL said it had, along with Reliance Power Ventures Ltd and Reliance Capital Ltd, proposed to acquire 1.36 crore shares from RIHL, its wholly-owned subsidiary. The proposed acquisition price is Rs. 157.74 per share and the combined equity share of RIL, along with Reliance Capital, would be 10.28 crore shares making it 52.64 per cent of REL's share capital.

The date of the proposed acquisition is on or before June 30 and the mode is inter-se transfer among the promoters under Regulation 3(1)(e) of SEBI (Substantial Acquisition of Share and Takeovers) Regulations, 1999.

At its board meeting on June 18, RIL, headed by Mr. Mukesh Ambani, approved a demerger plan as part of separation of group companies — Reliance Energy and Reliance Capital — to create a separate entity for younger brother Mr. Anil Ambani.

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