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Click to edit Master subtitle style 4/28/12 RELIANCE INDUSTRIES AND RELIANCE PETROLEUM MERGER
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RELIANCE
INDUSTRIES AND
RELIANCE PETROLEUM
MERGER
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MERGER
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Reliance IndustriesLimited
RelianceIndustries Limited
(RIL) is India'slargest privatesector company on
all major financialparameters with aturnover of Rs.
1,39,269 crore (US$
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Reliance PetroleumLimitedReliance Petroleum
Limited (RPL) is a
subsidiary of Reliance
Industries Limited. RPL is
setting up a greenfield
petroleum refinery and
polypropylene plant in a
Special Economic Zone atJamnagar in Gujarat. With
an annual crude processing
capacity of 580,000
barrels per stream day
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RELIANCE INDUSTRIES AND
RELIANCE PETROLEUM MERGER
• Merger is India’s
largest ever• RPL shareholders to receive 1
(one) share of RIL for every 16(sixteen) shares of RPL
• RIL’s holding in RPL to be
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Merger Benefits and
Synergies
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The merger will unlock significant operational
and financial synergies that exist between RIL
and RPL. It creates a platform for value-enhancing growth and reinforces RIL’s position
as an integrated global energy company. The
merger will enhance value for shareholders of
both companies. The merger is EPS
accretive for RIL. Through this merger, RIL
consolidates a world-class, complex refinery
with minimal residual project risk, whilecomplementing RIL’s product range. There will
be further gains from reduced operating costs
arising from synergies of a combined operation.
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e merger w resu nRIL
• Operating two of the world’slargest, most complexrefineries
• Owning 1.24 million barrelsper day (MBPD) of crudeprocessing capacity, thelargest refining capacity at any
single location in the world
• Emerging as the world’s 5thlargest producer of Polypropylene
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MergerDetails
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n er e erms o e proposemerger, RPL shareholders will receive1 (one) share of RIL
for every 16 (sixteen) RPL shares heldby them. The appointed date of merger of RPL with RIL is 1st April2008. RIL will cancel its holding inRPL. Based on the recommendedmerger ratio, RIL will issue 6.92 crorenew equity shares to the existing
shareholders of RPL. This will result ina 4.4% increase in equity base fromRs 1,574 crore to Rs 1,643 crore.
Consequently, the promoter holding in
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Advisors to the merger are as
follows:
Valuation Advisors : Ernst & Young Pvt.
Ltd. And Morgan Stanley IndiaCo. Pvt. Ltd.
Transaction Advisors : JM FinancialConsultants Pvt. Ltd. and
Kotak Mahindra Capital Co Ltd.
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Fairness Opinion : DSP Merrill LynchLtd. (for RIL) and Citigroup
Global Markets India Pvt. Ltd(for RPL)
Legal Advisor : Amarchand &
Mangaldas & Suresh A.Shroff & Co.
Tax Advisor : Price Waterhouseand Coopers Pvt. Ltd
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THANK YOU
