In a complex restructuring move, three entities owned by the promoter group of Reliance Industries have been merged with another group affiliate in an exercise that resulted in recognizing an impairment of about Rs 15,800 crore.
The three entities - Reliance Ports and Terminals ( RPTL), Reliance Gas Transportation Infrastructure (RGTIL) and Reliance Utilities and Power (RUPPL) - will be merged with Reliance Industries Holding ( RIHPL), a company that is, in turn, owned by the promoters of RIL, Crisil said in a statement reaffirming the credit rating.
ET NOW, this newspaper's sister concern, had first reported the restructuring plan on March 21, this year. The restructuring involves demerger of investments (including impaired investments) to reduce cross holdings and loans and advances among group companies, transfer of businesses, and changes in redemption terms of some preference shares.
All three companies will now have a common owner. The standalone net worth of the demerging companies are expected to decline. However, the aggregate external debt and cash flows for the three companies will not change materially as a result of the restructuring, Crisil said.
RIHPL's 100% ownership in PTL, RUPPL and RGTIL is in addition to the economic interest it holds in nearly 370 million RIL shares, either directly or indirectly.
The three entities - Reliance Ports and Terminals ( RPTL), Reliance Gas Transportation Infrastructure (RGTIL) and Reliance Utilities and Power (RUPPL) - will be merged with Reliance Industries Holding ( RIHPL), a company that is, in turn, owned by the promoters of RIL, Crisil said in a statement reaffirming the credit rating.
ET NOW, this newspaper's sister concern, had first reported the restructuring plan on March 21, this year. The restructuring involves demerger of investments (including impaired investments) to reduce cross holdings and loans and advances among group companies, transfer of businesses, and changes in redemption terms of some preference shares.
All three companies will now have a common owner. The standalone net worth of the demerging companies are expected to decline. However, the aggregate external debt and cash flows for the three companies will not change materially as a result of the restructuring, Crisil said.
RIHPL's 100% ownership in PTL, RUPPL and RGTIL is in addition to the economic interest it holds in nearly 370 million RIL shares, either directly or indirectly.
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