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Reliance Power To Consider Merger With RNRL

02 July, 2010

Anil Ambani-led Reliance Power plans merger with another group firm Reliance Natural Resources. Reliance Power is implementing power projects with aggregate capacity of over 35,000 MW. 

According to the statement, Reliance Power board will consider the merger on July 4. A meeting of Reliance Power’s board of directors has been called on Sunday to consider the merger. No further details were disclosed at this point. 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.

Quoting share brokers, PTI has reported about possibility of a share-swap deal with four shares of RNRL for every one R-Power share. Currently, the two stocks have market values in the ratio of about 1:3. The two companies together command a market capitalisation of Rs 50,000 crore, PTI reports.

Last month, it 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.


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Reliance Power To Consider Merger With RNRL

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