Reliance Infrastructure Ltd today announced the demerger of certain power generation and supply businesses in Mumbai, Goa and Andhra Pradesh into a subsidiary for a consideration of Rs 6,282.50 crore.
"The Board of Directors of the Company at its meeting held on March 16, 2016, has approved a Scheme of Arrangement between Reliance Infrastructure Ltd and Reliance Electric Generation and Supply Private Ltd (REGSPL) and their respective shareholders and creditors subject to requisite approvals," Reliance Infrastructure Ltd has informed BSE.
Under the scheme, Mumbai Power Generation, Transmission and Distribution Division, Goa Power Station Division and windmill Division of the Reliance Infra will be transferred to the REGSPL.
"REGSPL shall pay aggregate lump sum cash consideration of Rs 6,282.50 crore to the company," it said.
According to the statement, the REGSPL will not be listed separately.
As per R-Infra, the demerger is aimed at increasing shareholders' value by leveraging diversified investment opportunities; attribution of appropriate risk and valuation to different businesses based on their respective risk-return profile and cash flows; pooling of resources at the company level and allocation of capital to each of the businesses based on risk-return; and simplified and transparent businesses and achieving operational synergies.
It also said that there will be no change in shareholding pattern of the company and of the REGSPL after this demerger.
It also stated that the turnover of Mumbai Power Generation, Transmission and Distribution Division was Rs 7,640.52 crore in last financial year, which was 63.15 per cent of the total turnover of the company.
Similarly, the turnover of Goa Power Station was Rs 41.71 crore (0.34%) while it was Rs 45.66 crore (0.38) of Samalkot Power Station Division.
The turnover of windmill division was Rs 9.75 crore which constitutes 0.08 per cent of total turnover of the company.
