Mumbai, Sept. 13: Decks for the proposed merger of the two flagship Reliance group companies —Reliance Industries and Reliance Petroleum— were cleared with today the Gujarat High Court’s approving the plan.
The remaining formalities for the merger will be completed before the end of this month and the AGM of the merged entity could be held by October, experts said. The merger would spawn in its wake the country’s first private sector Fortune Global 500 company.
Commenting on the merger RIL vice-chairman and managing director Anil D. Ambani said: “Reliance’s emergence as India's first private sector Fortune Global 500 company, within a short span of just 25 years of going public, is a tribute to the vision and entrepreneurial spirit of our legendary founder, the late Dhirubhai H. Ambani”.
“This watershed event will stand forever in our minds as testimony of Dhirubhai Ambani’s belief in the capabilities of the people of India, and the potential of the Indian markets,” he added.
Earlier on June 7, 2002, the Mumbai High Court had approved the proposed merger of RPL with RIL. On March 3, 2002, the board of directors of RIL and RPL had unanimously approved the merger of RPL with RIL, subject to all necessary approvals.
Subsequently, on April 8 2002, the shareholders of RIL approved the merger with an overwhelming majority representing 99.95 per cent in value of members present and voting, at the shareholders’ meeting convened under the orders of the Mumbai High Court.
RPL’s shareholders also gave the nod on April 15 with an overwhelming majority representing 99.99 per cent in value of members present and voting, at the meeting convened under the orders of the Gujarat High Court.
The book closure dates for the issuance of new RIL shares to RPL shareholders will be intimated to the stock exchanges and the public very soon, the company said.
Based on announced unaudited results of RIL and RPL for the financial year 2001-02, the merger will create India’s largest private sector company on all major financial parameters.
It will give RIL the unique distinction of becoming the country’s first private sector company to feature in the internationally tracked Fortune Global 500 list of the world’s largest corporations.