RIL to buy Chevron’s RPL stake at Rs 60 apiece

The Mukesh Ambani-controlled Reliance Industries (RIL) has decided US energy giant Chevron’s 5% stake in Reliance Petroleum (RPL) at a price of Rs 60 per share. The total outgo for the stake acquisition of 22.50 crore shares is pegged at Rs 1,350 crore.

Chevron had picked up 22.50 crore shares in RPL as part of an Equity Investment Agreement with RIL in April 2006. As per the deal, RPL and Chevron were to sign into agreements on crude supply and product offtake. On executing these agreements, Chevron was to purchase an additional 24% stake in RPL from RIL.

However, the Equity Investment Agreement added that in case these agreements were not fructified, Chevron would sell the stake to RIL.

RIL and Chevron have decided not to go ahead with the agreements and Chevron is committed to offloading the stake to RIL.