Reliance Inf S Regulatory News (RIFS)

3 Feb 2009 07:00



January 31, 2009

Sub: Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956

The Committee of Directors of the Company at their meeting held today, considered and approved a Scheme of Arrangement between Reliance Infrastructure Limited, Reliance Energy Generation Limited, Reliance Goa & Samalkot Limited, Reliance Power Transmission Limited, Reliance Energy Limited, Reliance Infraprojects Limited, Reliance InfraVentures Limited and Reliance Property Developers Limited and their respective shareholders and creditors ('the Scheme') under section 391 to 394 of the Companies Act, 1956.

The salient features of the Scheme are as under:

Pursuant to the Scheme, there will be no change in the capital structure of the Company. No shares or securities will be issued or cancelled.

A copy of the media release being issued is enclosed.

Kindly take the above on record.

Thanking you,

Yours faithfully

For Reliance Infrastructure Limited

Ramesh Shenoy

Company Secretary

MEDIA RELEASE

Reliance Infrastructure to demerge its business Divisions to 

wholly owned subsidiaries

Reorganisation to achieve synergies with 

transparent business structure

focused management - attract and retain quality talent

greater transparency of business performances

value unlocking enabled

No change in the capital structure of the Company

Mumbai, January 31, 2009 : The Committee of Directors of Reliance Infrastructure Limited today approved the Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956 for transfer and vesting of various division of Reliance Infrastructure to its wholly owned subsidiaries.

The re-organization exercise would achieve the following for the R Infra Group: 

Simplified and transparent business structure and alignment of interest of various stake holders

Focused management

Greater transparency on the performance of individual businesses

Attract and retain quality talent

Value unlocking enabled - Possibility of investments by strategic / financial players in different businesses

Optimal financing structure for individual businesses

Tax efficiency for individual businesses

 The Scheme envisages transfer of various Divisions of Reliance Infrastructure Limited to various Resulting companies as under : 

Dahanu Thermal Power Station to Reliance Energy Generation Limited

Power Transmission Division to Reliance Power Transmission Limited

Power Distribution Division to Reliance Energy Limited

EPC Division to Reliance InfraProjects Limited 

Toll Roads Division to Reliance InfraVentures Limited

Real Estate Division to Reliance Property Developers Limited

Pursuant to the Scheme, there will be no change in the capital structure of the Company. No share or securities will be issued or cancelled.

The Scheme is subject to requisite consent of shareholders, lenders, creditors of RInfra and resultant companies, stock exchanges, the Bombay High Court, and the permission or approval of the Central Government or any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.