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RIL board approves demerger
June 18, 2005 11:32 IST
Last Updated: June 18, 2005 11:39 IST
RIL board, headed by Mukesh Ambani, on Saturday approved a demerger plan as part of separation of group companies Reliance Energy and Reliance Capital to create a separate entity for younger sibling Anil Ambani.
The decision to demerge listed group companies RIC and REL was part of the settlement to end the seven-month long battle between the Ambani brothers over the ownership issue of Reliance empire, highly placed sources said after nearly an hour-long meeting of the flagship company RIL.
The decision is subject to ratification of the shareholders. As part of the demerger, the flagship company would exit from Reliance Energy and Reliance Capital where it has 45 and 47 per cent equity respectively.
RIL would also dissociate from Reliance Infocomm, a privately held group company, where it has 45 per cent equity.
The demerged entity would be under the charge of Anil Ambani, sources said, adding the structure and shape was a matter of detail that would be worked in due course of time.
However, there was no official comment from either Mukesh or younger brother Anil, who stepped down as RIL vice chairman and managing director just before the company's board meeting, on details and structure of settlement.RIL is expected to make a formal announcement later in the day.