New Delhi: India’s biggest company by market value, Reliance Industries Ltd (RIL), has acquired Chevron Corp.’s 5% stake in unit Reliance Petroleum Ltd (RPL).
The stake of RIL in the unit increased to 75.38% after the stake changed hands, Reliance Petroleum said in a statement to the Bombay Stock Exchange on Thursday.
RIL paid Rs60 per share aggregating to Rs1,350 crore, the same price at which the US firm had bought the stake in RPL in April 2006.
According to an agreement signed at the time, Chevron had the right to increase its stake in RPL to 29% within three months of commissioning of the company’s only-for-exports refinery at Jamnagar or exit the company completely. RPL commissioned the 580,000 barrels per day refinery in December 2008.
The agreement stated that if Chevron was to exit RPL, it would do so at the same price at which it bought the shares in 2006—Rs60 a share.
Last month, RIL merged RPL with itself in an all-share deal valued at about Rs8,500 crore. The merger also involved RIL buying back Chevron’s stake in RPL.
PTI contributed to this story.