Reliance Comm completes corporate re-organisation in record 6 months

Mumbai, Sep 8 (UNI) Reliance Communications Ltd (RCOM), a Anil Dhirubhai Ambani Group company today announced the completion of its corporate re-organisation plan initiated in March 2006, in a record period of less than six months from the listing of the company.

Announcing this, the company said the orders of the Bombay High Court approving the re-organisation has been filed with the Registrar of Companies, and the stock exchanges.

Accordingly, the company has now become the primary operating company for the entire telecom business. RCOM and its wholly-owned subsidiaries own 100 per cent of the networks, facilities, licenses and properties used in its business.

These include inter alia the nationwide CDMA and GSM wireless networks, the national and intra-city fibre optic networks, the FLAG and FALCON global submarine cable systems, the Reliance World retail chain, the internet data centres, contact centres, network operating centres, and other facilities used in these businesses.

The entire shareholdings of the Promoter Group in certain affiliates will stand exchanged for equity shares of the company, thereby providing a simple and transparent ownership structure, and completely aligning the interests of the Promoter Group with over two million shareholders of the company.

The market capitalisation of the company increases to Rs 62,300 crore (USD 13.4 billion) - among the top 10 companies in India.

The Company is part of the benchmark Sensex, Nifty and MSCI indices, widely tracked by domestic and international investors.

Under the ownership structure resulting from the de-merger of Reliance Industries Ltd (RIL), the company did not own a majority stake in any of its principal operating companies or other affiliates. Following the de-merger, the ownership by the RCOM company of its principal operating companies was as follows: As much as 45.34 per cent of Reliance Infocomm Ltd (RIC), which in turn held 100.00 per cent of FLAG Telecom Ltd (FLAG), while 45 per cent of Reliance Communications Infrastructure Ltd (RCIL) and 35.60 per cent of of Reliance Telecom Ltd (RTL).

The balance of the equity shareholdings in RIC, RCIL, and RTL were owned entirely by the Promoters of the company. This legacy structure had significant drawbacks with regard to resource mobilisation, transparency, and valuations.

UNI SN MJ SKB1636