RCVL board approves ownership restructuring of its group cos

Mumbai, Mar 12 (UNI) The board of directors of Reliance Communication Venture Limited (RCVL) today approved the ownership restructuring proposal whereby RCVL would have 100 per cent ownership control in the three telecom group companies, which are valued at the current market capitalisation of Rs 61,000 crore.

Announcing the mega ownership consolidation process as advised by two reputed international firms, KPMG and J M Morgan Stanley, the approved scheme of ownership restructuring will be implemented through an appropriate scheme of arrangement under sections 391 to 394 of the Companies Act, 1956, involving issuance of fully paid-up equity shares of Rs five each of RCVL to the respective transferors, as consideration for the proposed acquisition, and cancellation of cross-holdings, and will be subject to all necessary permissions and approvals, including inter alia, of shareholders, lenders, stock exchanges, high courts, regulatory authorities. The entire exercise will be completed within a time period of 120 days.

Trammell Crow Meghraj Pvt Ltd has advised on the property valuation.

The legal advisors to the proposed re-organisation were Mulla&Mulla and Craigie Blunt&Caroe The proposed scheme of re-organisation will be fully effective from April one.

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