Chevron exits RPL; sells 5% stake to RIL

Mukesh Ambani-run Reliance Industries has bought back US energy giant Chevron Corp's five per cent stake in Reliance Petroleum for Rs 1,350 crore (Rs 13.5 billion).

In a disclosure to the Bombay Stock Exchange, Reliance Petroleum LTD said Chevron India Holdings has sold 22.50 crore shares, representing five per cent stake in RPL, to Reliance Industries.

RIL has paid Rs 60 per share aggregating to Rs 1,350 crore, the same price at which the US firm had bought five per cent stake in RPL in April 2006.

Last month, RIL merged RPL with itself in an all-share deal valued at about Rs 8,500 crore (Rs 85 billion).

The merger also involved RIL buying back Chevron's five per cent stake in RPL for Rs 1,350 crore.

Pursuant to the acquisition, the promoter group firm RIL holds a 75.38 per cent stake in RPL.

Meanwhile, as per the agreement in 2006, Chevron had the right to increase its stake in RPL to 29 per cent within three months of commissioning of the only-for-exports refinery at Jamnagar or exit the company completely. RPL commissioned the 580,000 barrels per day refinery in December 2008.

The agreement stated that if Chevron was to exit RPL, it will do so at the same price at which it bought the shares in 2006 -- Rs 60 a share. However, if it were to increase the stake, the price would have been the current market rates.

"The acquisition has been undertaken via inter-se transfer of shares amongst the promoters," the disclosure further said.

Shares of RPL closed at Rs 111.65, up 3.67 per cent on the BSE, while RIL settled with a gain of 3.80 per cent at Rs 1,802.70 on the BSE on Wednesday.

"The acquisition has been undertaken via inter-se transfer of shares amongst the promoters," the disclosure further said.

Shares of RPL closed at Rs 111.65, up 3.67 per cent on the BSE, while RIL settled with a gain of 3.80 per cent at Rs 1,802.70 on the BSE on Wednesday.