There are media reports suggesting RNRL-RPOWER merger and this merger doesn’t create any change in pricing @ this point of time but it would be negative for RPOWER share holder as the Equity base would increase RNRL as a company didn’t have any business and with Supreme judgment going in favor of RELIANCE, there were hopes that RNRL would be compensated by RIL and if that doesn’t happen then both ADAG stocks ( RNRL & RPOWER) stand to lose is my view. Both these stocks are richly valued and I don’t see any value creation in short term but interest of RNRL shareholder is protected @ the cost of RPOWER stake holder.
Anil Ambani-controlled RPOWER is likely to be merged with sister firm RNRL, The boards of the firms, both part of the ADAG, may meet in a week, the ET Now business channel said, citing unidentified sources. http://in.reuters.com/article/idINIndia-49837420100702 Based on the market values of the two firms, Angel Broking analyst Rupesh Sankhe expects Reliance Natural shareholders to receive one Reliance Power share for every 3.75 to four shares they hold.
