The board of Reliance Power-owned by younger Ambani brother has approved its merger with another group company, Reliance Natural Resources Ltd (RNRL). In the meeting taken place on Sunday, the board has approved the merger based on the basis of share swap of 4:1. Share swap ratio implies RNRL valued at Rs 7,157 crore.
According to the swap agreement, 4 shares of RNRL will be equivalent to 1 share of RPower. RPower shareholders will get 4 shares of RNRL for each share held of RPower, while RNRL shareholders will get 1 RPower share for 4 RNRL shares.
Anil Ambani-led Reliance Power is implementing power projects with aggregate capacity of over 35,000 MW. The two companies together command a market capitalisation of Rs 50,000 crore. On Friday, RNRL shares went down 1.25% to close at Rs 63.65 a share while R-Power shares closed by 3.3% up at Rs 175.15.
Last month, RPower has announced plans to buy two Indonesian coal companies through its unit Reliance Coal Resources. Reliance Coal Resources Ltd has entered into share purchase agreements with two Indonesian coal firms that own three coal mines there, Reliance Power had said. The coal from Indonesia will be used for the Krishnapatnam ultra mega power project- a 4,000-MW supercritical coal-fired power generation facility and other power projects of Reliance Power.
In May, Reliance Power has acquired 433 MW of power generation assets from another group company Reliance Infrastructure for Rs 1,095 crore. It comprises 220 MW at Samalkot in Andhra Pradesh, 165 MW in Kerala and 48 MW in Goa. With acquisition of Reliance Infrastructure assets and commissioning its 600 MW Rosa Power projects in UP, Reliance Power will have over 1000 MW capacity under its portfolio.