Reliance Industries said that 99.99 per cent of the shareholders involved in the meeting voted in favor of the proposal.
Transfer of two refineries of Gujarat to new company.
Industrialist Mukesh Ambani’s Reliance Industries Limited said on Friday that it has received approval from shareholders and lenders to make its oil-chemical business a separate entity. As per the instructions of the National Company Law Tribunal (NCLT), the company convened a meeting of shareholders and all lenders to consider the proposal to convert O2C business into a separate subsidiary – Reliance O2C Limited.
In the information given to the stock market, Reliance Industries said that 99.99 per cent of the shareholders involved in the meeting voted in favor of the proposal. Stakeholders attended the meeting via video conference. The meeting was presided over by former Supreme Court judge (retired) BN Srikrishna. RIL announced in February to make the oil refining, fuel marketing and petrochemicals (O2C) business an independent entity with a $ 25 billion debt from the parent entity. The company wants to expose the value of this business by selling stake to global investors like Saudi Aramco.
There will be ease in attracting investors
According to the information given earlier by the company, the separation of Reliance O2C Limited will enable the company to focus on the entire value chain from oil to chemicals sector and improve efficiency and attract investor capital with a separate sustainable capital structure and management team.
Two refineries of Gujarat will be transferred to new company
Two refineries in Jamnagar, Gujarat, petrochemical centers in different states and a 51 per cent stake in retail fuel business will be transferred to the O2C unit. It depends on the necessary approvals which are expected to be received by September. Once this is completed, Reliance Industries will comprise the oil and gas exploration and production business, financial services, treasury and textile business of the group and will act as the holding company of the group.
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