New Delhi: Anil Ambani controlled Reliance Communication Ventures (RCOVL) on Sunday announced a major re-organisation to bring group's entire telecom business activities valued at Rs 61,000 crore under one umbrella where promoters would hold about two-third equity.
The Reliance Communication ventures board, which met on Sunday, has decided to merge Reliance Infocomm with itself.
The entire merger process also includes the cancellation of all cross holdings in RCOVL group companies.
The board has announced that RCOVL will hold 100 per cent in all group communication businesses including bandwidth company Flag Telecom, Reliance Communication Infrastructure, Reliance Telecom and Reliance Info stream which will become 100 per cent subsidiary of RCOVL.
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.
The board also announced that subsequent to the reorganisation the promoters stake in RCOVL will go up to 63 per cent from the present 45 per cent.
The reorganisation will be done through a cash less share swap only. The two independent valuations were done by KPMG and Morgan Stanley.
As promoters, Anil and mother Kokilaben with their 63 per cent, 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.
With PTI inputs
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