Reliance Industries Ltd is the India’s largest company, on Thursday said its board has approved to separate its oil-to-chemicals business into a separate division to enable the sale of 20 percent stake in the unit to Saudi national oil company Aramco. After the approval, the oil-to-chemical business will become a separate vertical with independent balance sheet as the conglomerate’s digital arm, Jio Platforms. RIL had organized all its digital businesses including Reliance Jio that has about 388 million telecom subscribers, into Jio Platforms.
Actually Reliance announced Thursday that its board approved a scheme to separate its oil to chemicals business into a separate company which adding that the diligence by Saudi Aramco to buy a 20 per cent stake in the de-merged business was on track. Though RIL didn’t give a timeline on when the deal would be concluded, surrounded by turmoil in the oil industry marked by falling crude prices for refined products such as petrol, diesel and jet fuel because of the lockdown and shutdown in many parts of the globe for the pandemic situation of the corona virus.
And so also the company hopes to complete the capital raising programme about Rs1.04 lakh crore by Q1 of that current financial year. It is to be noted that this raising plan does not mention the planned investment by Saudi Aramco. As per that particular Scheme of Arrangement Reliance will transfer the O2C business of the Company to Reliance O2C Limited for a lump sum consideration equal to the income tax net worth of the O2C undertaking as by the appointed date of that particular Scheme.
At last as per the Reliance told that the O2C undertaking of the company comprises the entire oil-to-chemicals business of the company including refining, petrochemicals, fuel retail and aviation and bulk wholesale marketing businesses together with its assets. This Scheme is lead to necessary that regulatory approvals under applicable laws .