India's Reliance Industries (RIL) said that the deal to sell 20 per cent stake in the company to Saudi Aramco was still on track as due diligence was on-going.
In a statement, RIL said that in spite of the Covid-19 crisis and the lockdowns, the due-diligence by Saudi Aramco for the planned investment in the oil to consumer business is on track as both the parties are committed and actively engaged.
Reliance Industries revealed that it will create a seperate oil-to-chemicals (O2C) business to enable the sale of 20 per cent stake in the unit to Saudi Aramco.
The RIL announced that its board has approved the proposal, while it needs to get approved by the National Company Law Tribunal.
"The board at its meeting held today has approved a scheme of arrangement for transfer of O2C undertaking of the company to Reliance O2C Limited as a going concern on slump sale basis for a lump sum consideration equal to the income tax net worth of the O2C undertaking as on the appointed date of the scheme," RIL said in a filing to the Bombay Stock Exchange.
"O2C division of the company comprises of entire oil-to-chemicals business consisting of refining, petrochemicals, fuel retail and aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities," RIL added.