Date:09/09/2006 URL: http://www.thehindubusinessline.com/2006/09/09/stories/2006090904371400.htm

Back ADAG stake in Reliance Comm goes up to 66.6 pc

Our Bureau

Follows reorganisation, which merges Reliance Infocomm with RCOM

Mumbai , Sept. 8

Mr Anil Ambani and his associates (ADAG) have increased their stake in Reliance Communications to 66.6 per cent following the corporate reorganisation of the company.

The current shareholding pattern sees domestic institutions and banks hold 6.30 per cent stake, foreign investors 14.15 per cent, and the public 12.93 per cent in Reliance Communications (RCOM).

As recently as June, the ADAG group had around 42 per cent stake in the company.

RCOM had owned 45 per cent in Reliance Infocomm Ltd (which in turn held 100 per cent of FLAG Telecom), 45 per cent of Reliance Communications Infrastructure Ltd and 35.6 per cent of Reliance Telecom Ltd. The balance equity shareholdings in these companies were owned entirely by the ADAG group, promoters of RCOM.

Their stake now increases following the reorganisation, which merged Reliance Infocomm with RCOM and also made the rest of the companies fully owned subsidiaries of RCOM. The ADAG group had also acquired a 4 per cent stake in RCOM a couple of months ago through open market purchase.

RCOM has also acquired the 134-acre Dhirubhai Ambani Knowledge City complex and several other properties used in its business which were previously privately-owned, said a statement from the company.

The reorganisation was announced in March this year, and involved exchange of shares with no cash outgo.

New equity shares of RCOM are being issued in exchange for the promoters' direct equity shareholdings in Reliance Infocomm, Reliance Communications Infrastructure and Reliance Telecom Ltd, and as consideration for the properties, said the company.

The issued share capital of RCOM will stand at 204.461 crore shares of face value Rs 5 each. The market cap of the company increases to Rs 62,300 crore, said the company.

The orders of the Bombay High Court approving the reorganisation have been filed with the Registrar of Companies.