MUMBAI: Reliance Communications Ltd today informed the BSE that it has
completed its corporate reorganisation plan initiated in March 2006.
The orders of the High Court of Bombay approving the reorganisation have been
filed with the Registrar of Companies and the Stock Exchanges, Rel Comm said.
The reorganization was necessitated following the ownership structure
resulting from the de-merger of Reliance Industries Ltd. The company did not own
a majority stake in any of its principal operating companies or other
affiliates.
The balance of the equity shareholdings in Reliance Infocomm Ltd, Reliance
Communications Infrastructure Ltd and Reliance Telecom Ltd were owned entirely
by the promoters of the company. This legacy structure had significant drawbacks
with regard to resource mobilization, transparency and valuations.
Following the completion of reorganization plan, the company has now become
the primary operating company for the entire telecom business. The company and
its wholly owned subsidiaries own 100 per cent of the networks, facilities,
licenses and properties used in its business.
These include the nationwide CDMA and GSM wireless networks, the national and
intra-city fibre optic networks, the FLAG and FALCON global submarine cable
systems, the Reliance World retail chain, the Internet data-centres, contact-centres,
network operating centres, and other facilities used in these businesses.
The entire shareholdings of the promoter group in certain affiliates will
stand exchanged for equity shares of the company, providing a simple and
transparent ownership structure, and completely aligning the interests of the
promoter group with over two million shareholders of the company.
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