Reliance Industries' Aramco stake deal on track despite Covid
OIL AND GAS NEWS
Reliance Industries Limited (RIL), an Indian multinational conglomerate, said that the deal for sale of 20 per cent stake in the company to global oil giant Saudi Aramco was still on track as due diligence was on-going.
Billionaire Mukesh Ambani had in August last year announced initial agreements for the sale of its key stakes in the oil-to-chemical business to the Saudi Aramco. Also, a 49 per cent interest in fuel retailing business was sold to UK's BP for Rs7,000 crore, reported Business Today.
In line with this, RIL said it plans to hive off its oil-to-chemicals (O2C) business into a separate division to enable the sale of 20 per cent stake in Aramco.
The RIL's board has approved the proposal, while it needs to get approved by the National Company Law Tribunal, stated the report, citing a company filing to Bombay Stock Exchange.
"The board at its meeting held today has approved a scheme of arrangement for transfer of O2C undertaking of the company to Reliance O2C Limited as a going concern on slump sale basis for a lump sum consideration equal to the income tax net worth of the O2C undertaking as on the appointed date of the scheme," it added.
Post the approval, the oil-to-chemical business will become a separate vertical (Reliance O2C Limited) with independent balance sheet just like the digital arm, Jio Platforms.
"O2C division of the company comprises of entire oil-to-chemicals business consisting of refining, petrochemicals, fuel retail and aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities," it added.
