|RCoVL rejigs telecom business
Anil Ambani-controlled Reliance Communication Ventures (RCoVL) on Sunday announced a major re-organisation.
The re-organisation brings the group's entire telecom business activities valued at Rs 61,000 crore under one umbrella where promoters would hold about two-third equity.
The decision to revamp the business activities, wherein Reliance Infcomm would be merged with RCoVL while Reliance Telecom and Reliance Communication and Infrastructure would become the 100 per cent subsidiary, was taken at the Board meeting in Mumbai on Sunday afternoon.
The re-organisation, to be completed within four months after all necessary clearances, would increase the paid up capital of RCoVL to Rs 1,022 crore in terms of 204.5 crore shares of Rs five each.
Going by the present price of Rs 301 a share of RCoVL, the valuation of the single listed communication company of the group would come to a staggering Rs 61,000 crore.
As promoters, Anil and mother Kokilaben with their 63 per cent equity in the reorganised RCoVL would be a little less than Rs 40,000 crore as per the present share prices of the company.
The promoters equity under the new dispensation would go up from the present about 40 per cent in lieu of transfer of their equity in three other companies to RCoVL.
The reorganisation, based on valuation by global firms KPMG and JM Morgan Stanley, "upholds the principles of transparency, fairness and corporate governance, and is a historic milestone in our endeavour to create the most valuable Indian based global communications services company," Anil said after the Board Meeting.
Mukesh relents, hands over 4 companies
to Anil RIL
The decision to demerge came after Mukesh nominees Sandeep Tandon and LV Merchant quit.
Mukesh's group also handed over the management of the four companies -- Reliance Energy Ventures, Reliance Capital Ventures, Reliance Communication Ventures and Reliance Natural Resources Ltd -- to Anil Dhirubhai Ambani group following the reconstitution of boards of the new entities.
The settlement was concluded after Tandon, Chairman of the four entities, convened the meetings of their respective boards following the transfer of the shares Mukesh Ambani group promoted companies (promoter shares) to Anil.
The settlement follows reconstitution of the boards of the four companies -- Reliance Energy Ventures, Reliance Natural Resources Ltd, Reliance Communication Ventures and Reliance Capital Ventures -- and transfer of shares from Mukesh Ambani group-promoted companies in these entities to Anil.
The Board meetings of these companies were convened by the Chairman Sandeep Tandon, a Mukesh group nominee, where he along with other nominee LV Merchant resigned to pave way for inclusion of Anil and his nominees.
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