In a mega Rs 50,000-crore deal, the Anil Ambani group on Sunday announced merger of RNRL with another group firm Reliance Power, which would now become a direct beneficiary of the gas deal signed with Mukesh Ambani-led Reliance Industries.
As part of the all-stock deal, Reliance Power will give one of its shares for every four held in RNRL. RNRL shareholders, including the promoters, would get Reliance Power shares worth about Rs 7,150 crore, as per the current market prices. Out of these, promoters would get shares worth over Rs 3,600 crore.
The deal comes within days of RNRL signing a revised gas supply deal with Reliance Industries (RIL) for power projects, which are under the charge of Reliance Power.
Following the Supreme Court decision on May 7, wherein its plea was rejected for cheaper gas from RIL, the Anil Ambani group firm RNRL had lost much of its relevance as a business entity.
Announcing the deal, the two companies said in a joint statement "Reliance Power's plans for setting up up to 10,000 MW gas-based power plants (would) be accelerated" and Reliance Power would "derive substantial benefit from RNRL's Gas Supply Master Agreement with RIL".
Ahead of today's board decision, RNRL shares closed at Rs 63.65 a piece and Reliance Power at Rs 175.15 on Friday.
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