Reliance Industries demerger wrangles resolved
AFP
MUMBAI
Petroleumworld.com 02 08 06
Family-run Reliance Industries, India's largest private business,
completed its split into five companies late Tuesday, ending a
renewed round of sparring this week between two brothers over
the break-up.
"All issues relating to ownership, control and transfer of
shares have been resolved," Sandeep Tandon, an outgoing board
director, told television channels.
The corporate split, first announced in June, followed a bitter
feud between the two Ambani brothers who head Reliance, Mukesh
and Anil, after the death of their father and company founder
Dhirubhai Ambani in July 2002.
Elder brother Mukesh formally handed over control of four newly-created
companies to his younger brother Anil following a board meeting
on Tuesday, from which both brothers stayed away.
"The primary objective of the demerger process which has
been completed is to unlock shareholder value of the demerged
company and the resulting companies," Reliance Industries
said in a statement.
The business group's revenues are equivalent to 3.5 percent of
India's GDP.
The restructuring deal will leave Reliance Industries to focus
mainly on oil and gas production while its other interests, including
telecoms and electricity, are hived off.
The new companies will form part of the rechristened Reliance-ADAG
(Anil Dhirubhai Ambani) group and are set for listing on the country's
two main bourses this year.
Reliance Industries's net profit for the quarter ended December
fell 15 percent to 17.76 billion rupees (400 million dollars)
from 20.91 billion rupees in the year-earlier period, largely
due a refinery shutdown for maintenance.
AFP
02/07/06
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© 2006 AFP. All rights reserved
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