Talks between both sides are back on track, they added. Deal negotiations between the two sides are expected to gather momentum from April of 2021. The final deal may see a combination of stock swap and cash.
Following the development, the stock rose 1.37 per cent to hit a high of Rs 2,094 on BSE.
According to the scheme of arrangement, RIL’s oil-to chemicals business, consisting of its refining and petrochemicals assets, fuel retail (51 per cent in a JV with BP) and bulk wholesale marketing businesses, will get hived off into a step-down subsidiary, which will be initially wholly-owned by RIL.
The group owns one of the world’s largest and most integrated O2C complexes in Gujarat. The vertical historically has been the cash cow for the entire group, contributing 62 per cent of the revenue and 58 per cent of the total operating profit in FY20.
The valuation of the business is getting finalised, but is expected to be between $75 billion and $85 billion, inclusive of its debt.