he Board of Directors of Reliance Industries on Monday approved the merger of Reliance Petroleum Ltd with the former. The swap ratio stands at 1:18 and each RPL shareholder stands to get 1 RIL share held.
Here are the highlights of the merger
RIL-RPL
RPL shareholders to get 1 Share of RIL for every 16 shares held
RIL to cancel holding in RPL
RIL to extinguish 13% treasury stock
Merger effective retrospectively from April 1, 2008
Merger ratio in favour of RPL
RIL-RPL
Outstanding shares: 157.4 cr shares
Additional Shares to be 6.92 cr shares
New share capital: 164.3 cr shares
Dilution: 4.2% on fully diluted basis
Post merger, RIL promoter holding to come down to 47% from 49%
RIL-RPL
Management sees merger to be tax neutral
Merger P&L neutral for RIL
Merger will help effective utilization of RPL’s $1.5bn operational cash flow
SEZ benefits to continue for merged entity
RIL-RPL
FY10E net sales of merged entity seen at Rs 210,000cr
FY10E net profit of merged entity seen at Rs 21,000cr
Earnings increase higher than 4.4% stake dilution in FY10
Merger 3-5% EPS accretive for RIL
FY10E EPS of combined entity at Rs 127-135
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