Reliance Industries has made a big announcement. It has completed the creation of a separate subsidiary for its Oil to Chemical business. With this, it has separated the chemical business from oil. The company has given this information to the stock exchange.
New structuring will facilitate the participation of investors from special sectors
Restructuring the O2C business will facilitate participation by strategic investors and investors from particular sectors. RIL has just said that talks are on for a deal with Aramco. The company expects to get the necessary approvals for the O2C business by the second quarter of the next financial year. It aims to work with the O2C business to reduce its carbon footprint and become a “net carbon zero” by 2035.
Reliance Industries will remain the owner
Reliance Industries will be the owner of 100% of O2C Limited in the structure that will be present. It will have refining and marketing and petrochemicals. Under it, there will be Reliance BP Mobility. Its 51% stake will be held by O2C. BP will hold a 49% stake in it. Under Otusi itself will be Reliance Global Energy Services Singapore and UK. Its 100% stake will be held by O2C.
Similarly, Reliance Industries will hold an 85.1% stake in Reliance Retail Venture. Similarly, there will be Jio and Oil & Gas segments. Apart from this, there will be another segment as well. All refining, marketing, and petrochem assets will be transferred to the O2C business.
The company will have to get the necessary approval
The company has said that for this it will have to get approval from SEBI and the stock exchange. Approval of equity shareholders and creditors will also be required. Regulatory authorities and income tax authorities have to be approved. Approval will also be required from Mumbai and Ahmedabad NCLT. However, he has also filed with the NCLT.
The company has assets of $ 89 billion
The company said that Reliance Industries alone has total assets of $ 89 billion. It has $ 45 billion of long-term assets. Otoussi has been given a loan of $ 25 billion. Cash and its equivalent are $ 19 billion. O2C has total assets of $ 42 billion. The total assets of the entire group are stated to be $ 152 billion.
Saudi Aramco’s deal hangs
Let us know that the Reliance Industries deal with Saudi Aramco has been hanging for a long time. However, according to recent news, this deal is going on and will be completed soon. Under this, the company will sell a 20% stake in Reliance. The company says the move will help it pursue growth opportunities with strategic partners. The company’s oil-to-chemical unit includes petrochemical units and retail fuel business. This excludes oil and gas-producing sectors like KG-D6 and the textile business.
O2C business earnings information was given in quarterly results
Reliance first reported the O2C business earnings in its third-quarter results. Previously, refining and petrochemical businesses were reported separately. In the October-December 2020 earnings statement, the refining and petrochemical, as well as fuel retailing businesses, reported earnings together.
Started segregation last year
Reliance began last year to transfer the O2C business to a separate entity to sell potential stakes to companies such as Saudi Aramco. In July 2019, Ambani said that a separate subsidiary in the process of separating O2C would be completed by early 2021. Reliance owns two oil refineries at Jamnagar in Gujarat with a combined capacity of 68.2 million tonnes per annum.
The company holds a 66.6% stake in the KG-D6 block where it is investing around USD 5 billion in developing a second set of gas discoveries with BP.
Like and Follow us on :