Reliance Power-RNRL merger approved by shareholders

The Equity shareholders of Reliance Power Limited (Reliance Power) and Reliance Natural Resources Limited (RNRL) at their respective Meetings convened as per the Order of the Hon’ble High Court of Judicature at Bombay, held on 4thSeptember, 2010, have approved the Composite Scheme of Arrangement (Scheme), inter alia, between RNRL and Reliance Power under Sections 391 to 394 of the Companies Act, 1956, with overwhelming majority.

Reliance Power and its shareholders will derive substantial benefits from the Scheme, as follows:

Gas supply under RNRL’s Gas Supply Master Agreements with Reliance Industries Limited facilitating accelerated implementation of Reliance Power’s plans for setting up over 8,000 MW of gas based power generation capacity.

Prospects for gas from RNRL’s Coal Bed Methane (CBM) blocks, comprising of 45% interest in 4 CBM blockswith an acreage of 3,251 sq. kms. and estimated resources of about 193 billion cubic metres; and a 10% share in an oil and gas block in Mizoram,with an acreage of 3,619 sq. kms. and reserve potential of upto 28 billion cubic metres.

Enhanced reliability and cost efficiency for fuel supplies through RNRL’s coal supply logistics and shipping business.

Significant further enhancement of Reliance Power’s overall growth prospects.

RNRL’s shareholders will benefit from the Scheme, by participating in future growth prospects of Reliance Power’s diversified generation portfolio of over 35,000 MW, and its substantial coal reserves in India and abroad.

RNRL shareholders representing approx. 80% of its capital are also shareholders of Reliance Power, and over 80% of them received their shares FREE on demerger from RIL.

Reliance Power will have over 6 million shareholders, the world’s largest shareholding family, upon completion of the deal. 

Reliance Anil Dhirubhai Ambani Group
The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000 crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs. 8,400 crore (US$ 1.8 billion).

Reliance Power Limited
Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries has a portfolio of over 35,000 MW of power generation capacity, both operational as well as under development. Reliance Power has substantial coal reserves in India and abroad.

Reliance Natural Resources Limited
Reliance Natural Resources Limited, a part of the Reliance Anil Dhirubhai Ambani Group, is engaged primarily in sourcing, supply and transportation of gas, coal and liquid fuels. It is also engaged in exploration, production and distribution of gas.