ANI
23 Feb 2021, 11:25 GMT+10
Mumbai (Maharashtra) [India], February 23 (ANI): Reliance Industries Ltd (RIL) has initiated the process to move its oil-to-chemicals (O2C) business into an independent subsidiary and will retain 100 per cent management control.
All of refining, marketing and petrochemical assets will be transferred to the O2C subsidiary, it said in regulatory filings at stock exchanges late on Monday.
The promoter group will continue to hold a 49.14 per cent stake in the O2C business and the process will result in no change in shareholding of the company.
"The existing O2C operating team will move to the newly-created subsidiary with the transfer of business, but there will be no dilution of earnings or any restriction on the cash flows," said RIL.
RIL and its O2C subsidiary will work together to move towards the net carbon zero targets by 2035. The O2C business will invest in the next-generation carbon capture and storage technologies to convert carbon dioxide into useful products and chemicals.
It will also accelerate the transition from traditional carbon-based fuels to a hydrogen economy, RIL said adding the development will have no impact on its consolidated financial position, cost of capital, borrowings, investment-grade international and domestic AAA credit ratings.
The move will facilitate value creation through strategic partnerships, including the deal with Saudi Aramco, and attract dedicated pools of investor capital.
The company said that talks with Aramco -- the world's largest crude oil exporter -- to acquire 20 per cent stake in RIL's O2C business are still on.
Various approvals for the reorganisation to be in place by the second quarter of FY22. Following the reorganisation, RIL's stake in Reliance Retail Ventures will be 85.1 per cent and in Jio Platforms 67.3 per cent. (ANI)Get a daily dose of Manufacturing Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manufacturing Mirror.
More InformationPublicly, Beijing has presented itself as a neutral party in the war sparked by Russia's full-scale invasion of Ukraine, claiming it...
London [UK], July 11 (ANI): New UK package of support for Ukraine's immediate and longer-term needs was tabled at Ukraine Recovery...
Arrests of critics mount as authorities allege a wide-ranging plot to overthrow Prime Minister Nikol Pashinyans government An Armenian...
Patna (Bihar) [India], July 9 (ANI): RJD leader Tejashwi Yadav on Wednesday heavily criticised the Election Commission of India for...
Fazilka (Punjab) [India], July 9 (ANI): Two accused in the murder of Abohar businessman Sanjay Verma were killed in retaliatory police...
Patna (Bihar) [India], July 8 (ANI): Bihar ADG Kundan Krishnan on Tuesday informed that the shooter who was involved in the businessman...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
New Delhi [India], July 11 (ANI): Trade negotiations between the United States and China are moving slowly, raising the chances that...
(Photo credit: Brad Penner-Imagn Images) Anthony Volpe scored the tiebreaking run on a bases-loaded sacrifice fly by Aaron Judge...
(Photo credit: Jordan Johnson-Imagn Images) Pete Crow-Armstrong crushed a pair of home runs and right-hander Colin Rea handled the...
GUANGZHOU, July 10 (Xinhua) -- As global industries accelerate their transition toward intelligence and sustainability, China's innovative...
URUMQI, July 10 (Xinhua) -- A total of 24 journalists from 23 countries have participated in a media tour of northwest China's Xinjiang...