10th August 2005: In a surprise announcement, the boards of both Reliance Energy and Reliance Capital have said no decision has been taken about the demerger of four crucial businesses of Reliance Industries.
In a notice to the stock exchanges, Reliance Energy said in respect to the media reports on demerger of various businesses of Reliance Industries (RIL), the company has informed that the board of Reliance Energy has neither considered nor made any announcement relating to any scheme of demerger.
A similar announcement was made by Reliance Capital.
In respect of the media reports on the demerger of various businesses of Reliance Industries, the company has informed that the board of Reliance Capital has neither considered nor made any announcement relating to any scheme of demerger, the announcement from RCL said.
Soon after the Reliance Industries AGM on last Wednesday, Anil Ambani had announced the demerger proposal. He also announced the final swap ratio of shares between the four special purpose vehicles to be created by RIL and four companies which have come under the Anil group.
The demerger was approved by the RIL board only subsequently. The RIL board approved the scheme of demerger of the telecommunications, power, fuel management and financial services businesses of RIL in the ratio of 1:1 shares for all Reliance shareholders.
Stock markets were surprised over the demerger swap ratio announced by Anil Ambani before the approval given by RIL board.