Shareholders and creditors of Reliance Industries Limited (RIL) have approved the scheme of amalgamation of Reliance Petroleum Limited (RPL) with RIL.
As per the merger terms, RPL shareholders will get one RIL share for every 16 shares held in RPL. RIL will issue 6.92 crore shares to the existing shareholders of RPL, which will result in a 4.4% increase in RIL's equity base. Promoter's holding in RIL will fall from 49% to 47%.
Early last month, the boards of both the companies had approved RPL's merger with RIL, creating the world's largest refining capacity at a single location and the world's fifth largest polypropylene manufacturer. The merger was with retrospective effect from April 1, 2008. US energy giant Chevron Corp, which picked up a 5% stake in RPL in April 2006 has exited the company. RIL has purchased the Chevron stake for around $270 mln (Rs 1,377 crore). With this, RIL's stake in RPL increased to 75.38% from 70.38%.