New Delhi, April 2
Billionaire Mukesh Ambani’s Reliance Industries Ltd on Friday said it has secured approval of its shareholders and creditors for hiving off its oil-to-chemical (O2C) business into a separate unit.
As per directions of the National Company Law Tribunal (NCLT), the company convened meetings of equity shareholders, lenders and unsecured creditors for consideration of a resolution for transferring the O2C business to a separate subsidiary — Reliance O2C Limited.
100% creditors favour resolution
- In stock exchange filings, RIL said 99.99% of shareholders, who participated in the meeting held through video conferencing, voted in favour of the resolution
- While 100% of the secured creditors voted in favour of the resolution, 99.99% of unsecured creditors cast their vote in favour of the resolution
In stock exchange filings, RIL said 99.99% of shareholders, who participated in the meeting held through video conferencing, voted in favour of the resolution.
While 100% of the secured creditors voted in favour of the resolution, 99.99% of unsecured creditors cast their vote in favour of the resolution. The meetings were chaired by former Supreme Court judge Justice (retd) BN Srikrishna.
“Scheme of Arrangement between Reliance Industries Limited (transferor company) and its shareholders and creditors and Reliance O2C Limited (transferee company) and its shareholders and creditors was placed before” equity shareholders, secured and unsecured creditors for consideration and approval, the filings said. Shareholders and lenders cast votes electronically.
In February, RIL had announced the contours of spinning-off its oil refining, fuel marketing and petrochemical (oil-to-chemical) business into an independent unit with a $25 billion loan from the parent, as it looked to unlock value by settling stakes to global investors like Saudi Aramco.
The carving out of Reliance O2C Limited will enable the focused pursuit of opportunities across the oil-to-chemicals value chain, improve efficiencies through self-sustaining capital structure and a dedicated management team, and attract dedicated pools of investor capital, according to a company presentation.
