At meeting held on 30 April 2020
The Board of Reliance Industries at its meeting held on 30 April 2020 has approved a scheme of arrangement between the company and Reliance O2C, wholly owned subsidiary of the company.The scheme provides for the transfer of O2C Undertaking (as defined in the Scheme) of the Company to Reliance O2C Limited as a going concern on slump sale basis for a lump sum consideration equal to the income tax net worth of the O2C Undertaking as on the appointed date of the Scheme. O2C Undertaking of the Company comprises entire oil-to-chemicals business of the Company consisting of refining, petrochemicals, fuel retail & aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities, as more particularly set out in the Scheme.
Rationale for the Scheme is as under:
The nature of risk and returns involved in the O2C Business (as defined in the Scheme) are distinct from those of the other businesses of the Company and the O2C Business attracts a distinct set of investors and strategic partners.
The Company has been exploring various opportunities to bring in strategic / other investors in the O2C Business.
To facilitate such investments, it is proposed to transfer the O2C Undertaking into a separate wholly-owned subsidiary of the Company.
Accordingly, this Scheme is being proposed for transfer of O2C Business of the Company to Reliance O2C.
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