RIL O2C Business: Mukesh Ambani’s Reliance Industries (RIL) has outlined the demerger plan for the oil-to-chemical (O2C) business. Reliance Industries has plans to form a separate company for the oil-to-chemical business. The company hopes that by the second quarter of the next financial year, it will get the necessary approvals to move its oil-to-chemical business to a separate unit. This will include businesses such as petrochemical, gas, fuel retailing. Also, demerger will help to bring in investors like Saudi Aramco. The company said that the demerger will help in finding new opportunities in the O2C business.
Company asked for approval
The company has sought approval from shareholders and creditors. According to Reliance, it is expected that approvals will be received from National Company Law Tribunal (NCLT) Mumbai and NCLT Ahmedabad by the second quarter of FY22. RIL has informed in the exchange that the restructuring of the Oil to Chemicals business will allow it to take advantage of opportunities in the Otusi value chain. Also, the Dedicated Management Team will attract Investor Capital’s Dedicated Pools.
iPhone 12’s magic gone, 5 years later, Apple’s smartphone sold more than Samsung
100% control with RIL
According to the report, this new subsidiary will be given a loan for 10 years. The company will be given a loan of $ 2500 million to the new subsidiary. With this loan amount, the subsidiary will buy the O2C business. However, the company said that 100% control of this new subsidiary will be with the company. RIL has said in a notification to the exchange that even after reorganization, the promoter group will hold 49.14 per cent stake in the O2C business and this process will not have any consequences on the company’s stake.
