RPower, RNRL swap ratio fixed at 1:4

RPower, RNRL swap ratio fixed at 1:4

RNRL shareholders will get one RPower share, with face value of Rs 10, in exchange for four shares of RNRL of face value of Rs five each, the company said in a statement.

The share exchange ratio was based on the recommendations of a leading international consulting firm KPMG.

RNRL has become a wholly owned subsidiary of RPower and its shares have ceased to be tradable on the stock markets with effect from November 9, 2010.

The move comes after Bombay High Court last month approved the merger of both entities.
The merger will result in RPower becoming the world's largest shareholder family with around 50 lakh people, from the present level of 35 lakh.

Besides, RNRL's gas supply agreement with Reliance Industries will accelerate the implementation of RPower's plans for setting up over 8,000 MW of gas-based power generation capacity. Furthermore, the power major would be able to utilise gas from RNRL's coal bed methane projects.

RNRL shareholders would also benefit from the substantial coal reserves and growth prospects of RPower's diversified generation portfolio of 37,000 MW.

RNRL shareholders, representing about 80 per cent of its capital, are also shareholders of RPower and over 80 per cent of them received their shares free on demerger from RIL.

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