(From right) Mukesh Ambani, CMD of RIL, with wife Nita Ambani and mother Kokilaben Ambani | Photo: Bloomberg
In August 2019, Reliance Industries (RIL) Chairman Mukesh Ambani
said he wanted to make RIL a zero-debt company in 18 months by selling stakes in several businesses and unlocking value in some others. Since then, RIL has announced several deals, though it is yet to close them.
Here’s a closer look.
In August 2019, Saudi Aramco and RIL signed a non-binding letter of intent under which RIL was to sell 20 per cent stake in its refining and petrochemicals business for $15 billion.
In July 2019, RIL signed a deal with Canada’s Brookfield group for a 51 per cent stake at an investment of Rs 25,215 crore in its telecom tower assets through an investment infrastructure trust (InvIT). The InvIT plans to raise funds from other investors through an IPO, and buy the remaining stake using a portion of the issue proceeds. In March 2019, another Brookfield InvIT had bought RIL’s entire stake in East-West Pipeline for Rs 13,000 crore.
RIL also plans to bring a strategic investor in its fibre assets InvIT.
In December 2019, RIL and BP agreed to form a joint venture wherein BP will acquire 49 per cent stake in the retail fuel business. RIL is expected to get around Rs 7,000 crore through this transaction. BP has got EU clearance.
RIL also plans to list its retail and digital businesses and also induct strategic partners in these businesses in the near term.