RIL sells Rs 2,675 cr treasury stocks to LIC

RIL said the Trust will realise approximately Rs 2,675 crore,at an average price of about Rs 1035 per share. The financial impact will be reflected in the consolidated financial statements of the company,it said.

The treasury stock — created as a result of past mergers of subsidiaries with the parent company — was held by Petroleum Trust and nominally recorded as promoters’ stake,but the stock cannot be voted as per the rules. Petroleum Trust held a 6.65 per cent stake in the company — or 10.46 crore shares — prior to the two stock sales.

The Petroleum Trust,which was formed in May 2002 by Reliance Industrial Investments,was created after the merger of erstwhile Reliance Petroleum Ltd (RPL) with RIL. Since Reliance Industrial Investments,which held RPL shares could not hold shares of the parent company,the Petroleum Trust was formed to house these shares. A merger of Indian Petrochemicals Corporation (IPCL) with RIL resulted in an increase in the number of treasury shares.

Reliance is in preliminary talks with banks for a loan of up to $10 billion to back its bid for LyondellBasell. A deal with Lyondell would catapult it into the ranks of top petrochemical makers such as Saudi Arabia’s SABIC,Germany’s BASF and US-based Dow Chemical Co. The takeover of LyondellBasell would also give Reliance a leg up in its efforts to gain greater access to the US and European markets.